Last Updated: 4:30 PM EST
Stock indices finished today’s today’s trading in the green, as the Nasdaq 100 (NDX) and S&P 500 (SPX) gained 1.65% and 0.74%, respectively. This rally can be attributed to today’s Producer Price Index (PPI) report, which came in below forecasts. Core PPI came in 0.2% month-over-month and 2.1% year-over-year. For reference, analysts expected 2.3% year-over-year and 0.3% month-over-month.
Furthermore, the Department of Labor released its Initial Jobless Claims report, which came in better than expected. In the past week, 211,000 people filed for unemployment insurance for the first time. Expectations were for 216,000 individuals.
However, Continuing Jobless Claims, which measures the number of unemployed people who qualify for unemployment insurance, came in at 1.817 million. This was above the forecast of 1.8 million and higher than last week’s print of 1.789 million.
First Published: 5:05 AM EST
U.S. futures remained steady on Thursday morning as investors braced for another key inflation report. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by 0.02%, 0.08%, and 0.13%, respectively, at 4:43 a.m. EST, April 11.
Yesterday, all three indices – Nasdaq 100, S&P 500, and Dow Jones – fell 0.87%, 0.95%, and 1%. The decline comes as a hotter-than-expected March Consumer Price Index (CPI) print fueled concerns about the Fed’s path toward lowering interest rates.
Moreover, the minutes from the March Federal Open Market Committee (FOMC) meeting, released yesterday, added fuel to rate cut worries. It revealed that some officials are concerned about inflation remaining above the Fed’s 2% target.
Based on the latest economic data, the chief economist for Apollo Global Management (APO), Torsten Slok, concluded that the Fed would keep interest rates higher for longer and expects no cuts in 2024. Echoing Slok’s view, JPMorgan Asset Management’s chief global strategist, David Kelly, does not expect the Fed to lower rates in June.
Today, investors are looking forward to the Producer Price Index (PPI) report for March. Economists expect wholesale prices to have increased by 0.3% in March over the previous month. Also, U.S. initial jobless claims data for the week ended April 6 is scheduled for release.
On the corporate earnings front, CarMax (KMX), Fastenal (FAST), and Constellation Brands (STZ) are among the companies reporting quarterly results today.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.56%. At the same time, WTI crude oil futures trended higher, hovering near $86.22 per barrel as of the last check, on rising geopolitical tensions in the Middle East.
Elsewhere, European indices opened mixed today as investors assessed the hot U.S. inflation print and looked forward to the European Central Bank’s (ECB) policy decision later today.
Asia-Pacific Markets Ended Mixed on Thursday
Asia-Pacific indices ended today’s session on a mixed note as traders evaluated the U.S. CPI report, which dampened hopes for a June rate cut. On the other hand, softer-than-expected Chinese inflation data raised optimism about further policy easing, pulling Chinese stocks higher.
Hong Kong’s Hang Seng index declined by 0.26%. However, China’s Shanghai Composite and Shenzhen Component indices closed higher by 0.23% and 0.03%, respectively. At the same time, Japan’s Nikkei index fell by 0.35% while the Topix index gained 0.15%.
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