Last updated: 4:00 PM EST
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Stocks finished today’s trading session negative after Federal Reserve officials indicated that they may increase interest rates at their next meeting, despite concerns that the economy may enter a recession later this year due to banking-sector stresses. As a result, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) fell 0.11%, 0.41%, and 0.89%, respectively.
The officials’ latest meeting minutes suggested that the strength of price pressures and the high demand for labor may warrant additional policy firming to bring inflation down to the central bank’s 2% goal.
The Fed staff forecast, presented at the last meeting, anticipated that the banking crisis would cause the economy to slide into a mild recession later this year, with a recovery over the subsequent two years.
Nevertheless, Fed officials have decided that more needs to be done to tame inflation, despite the banking crisis causing speculation that the Fed might hold the line on rates.
Looking ahead, the Fed has signaled that it will pay close attention to other measures of economic activity, including bank lending conditions, as it weighs its next move.
Last updated: 12:25 PM EST
Stocks are in the green halfway into today’s trading session. As of 12:25 p.m. EST, the Dow Jones Industrial Average (DJIA), the S&P 500 (SPX), and the Nasdaq 100 (NDX) are up 0.3%, 0.2%, and 0.1%, respectively.
In addition, WTI crude oil is also up today as it hovers above $83 per barrel. Although the commodity is well off its yearly highs, its recent uptrend has led to prices at the pump gaining upward momentum across the country.
Indeed, the national average for regular gas was last $3.621 per gallon, up from last week’s reading of $3.528. Still, this remains significantly lower than the all-time high of $5.016 per gallon on June 14, 2022.
The highest prices can be found in California, where prices are substantially higher than the national average, at $4.885 per gallon. On the other hand, Mississippi is the state with the lowest gas prices, at $3.144 per gallon.
Last updated: 11:03 AM EST
Stocks are trending lower so far in today’s trading session. As of 11:03 a.m. EST, the S&P 500 (SPX) and the Nasdaq 100 (NDX) are down 0.1% and 0.4%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) is near the flatline.
Last updated: 9:39 AM EST
Stocks opened higher on Wednesday morning as investors weighed the latest inflation data. The Nasdaq 100 (NDX) is up 0.7%, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up 0.6% and 0.55%, respectively, at 9:39 a.m. EST, April 12.
Last updated: 8:37 AM EST
U.S. futures are rising higher today after the CPI report indicated that while headline inflation had cooled, core CPI remains elevated. Futures on the Nasdaq 100 (NDX) are up 1.10%, while those on the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up 0.76% and 0.89%, respectively, at 8:37 a.m. EST, April 12.
The CPI is considered an important indicator of the inflationary environment and is often looked upon by policymakers to decide their monetary stance. Also, the U.S.’ Producer price index (PPI) figures for March are due on April 13. Additionally, the Fed will release the minutes from its March policy meeting today, offering a rationale behind the last 25 basis point rate hike.
First published: 5:39 AM EST
Futures on the Nasdaq 100 (NDX) are down 0.12%, while those on the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) are up 0.07% and 0.17%, respectively, at 4:00 a.m. EST, April 12. Importantly, the International Monetary Fund (IMF) warned of a weak medium-term growth forecast for the coming years while also downgrading its outlook.
The inflation expectation is pegged at 5.2% for March, below February’s inflation figure of 6%. Plus, the CPI is expected to rise by 0.2% in March, lower than the 0.4% growth registered in February, as per economists polled by Dow Jones. The Federal Reserve’s next rate hike decision will be revealed in May. Whether the Fed decides to put a pause on the hikes or continues with at least a 25 basis point hike will be determined by the CPI numbers and the first quarter earnings season, which kicked off this week.
The big banks, namely JP Morgan Chase (NYSE:JPM), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC), report this week, putting a mark on how the recent banking turmoil has affected the bank’s earnings.
Stocks are expected to witness volatile sessions during the earnings season. Companies, especially banks, will reveal the extent of losses and bad assets on their balance sheet in their earnings reports.
Meanwhile, European indices are trading mostly in the green today as traders await key inflation data from the U.S.
Asia-Pacific Markets Finish Mixed
Most Asia-Pacific indices finished the trading session mixed today, as investors looked ahead to key U.S. inflation data and the Fed’s future course of monetary policy.
Remarkably, China’s inflation reading came in lower than expectations at 0.7%.
Hong Kong’s Hang Seng ended the trading session down 0.86%, while China’s Shanghai Composite ended up by 0.41% and the Shenzhen Component Index closed up 0.54%.
At the same time, Japan’s Nikkei and Topix indices ended the day in the green, up 0.57% and 0.76%, respectively, following the country’s PPI and machinery orders report.
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