Equities recovered from yesterdays inflation nerves, led by tech, as data showing cooling producer prices eased inflation jitters somewhat just a day ahead of earnings from major Wall Street banks.
Equities pared back steep early losses to only finish down 1% after hotter-than-expected inflation data threw cold water on hopes that the Federal Reserve would begin cutting interest rates as early as June.
Equities closed slightly higher as investors marked time ahead of key inflation data being released tonight. Treasury yields traded lower ahead of the data, giving light relief to the equity market.
Equities closed flat overnight amid cautious trading ahead of the latest inflation reading as well as the start of the first-quarter earnings season later this week.
Equities rallied Friday night despite very strong US employment numbers put any form of rate cuts this year into question.
Investors remained deluded that rate cuts hopes and a strong economic numbers can co-exist as equities had a relief rally due to Fed chair Powell saying rate cuts remain on the table for this year.
Investors remained deluded that rate cuts hopes and a strong economic numbers can co-exist as equities had a relief rally due to Fed chair Powell saying rate cuts remain on the table for this year.
Equities had a broad-based sell-off overnight extending the poor start to the second-quarter, pressured by health care stocks and another big jump in Treasury yields amid remarks from several Federal Reserve officials reiterating the need to keep rates higher for longer.
Equities ground higher before the long weekend as PCE data came in higher than expected, Powell said the inflation number was “as expected” and Chinese Manufacturing data expanded for the first time in 6 months
The S&P 500 clinched a fresh record closing high Wednesday, as Treasury yields slipped ahead of a speech from Federal Reserve governor Christopher Waller due later in the day and more cues on inflation.
Equities again drifted lower as investors digested data showing U.S. consumer confidence fell to the lowest level since November, just ahead of further remarks from Federal Reserve speakers and key inflation report later this week.
Equities closed lower Monday as big tech took breather ahead of key market-moving events this week including an update on inflation and remarks from Federal Reserve officials.
