Both CPI measures beat the expectations of economists polled by Bloomberg, with forecasts being a 0.3% monthly gain and a 3.4% annual rise. While February’s monthly gains fell in line with March’s figures, March’s annual gain exceeded the 3.4% annual rise posted in February.

Looking at “core” inflation, which excludes more volatile food and energy costs, the CPI rose by 0.4% compared to February and 3.8% on a yearly basis. Economists expected a 0.3% monthly gain and a 3.7% year-over-year rise, with actual figures outpacing both. Should inflation continue this upward trend, the Federal Reserve may reconsider its stance on introducing interest rate cuts later in the year.

The post Consumer Price Index Comes in Hotter in March appeared first on theprimarymarket.com.

Contracts listed on the tech-heavy Nasdaq Composite index rose 0.3% higher, with futures on the S&P 500 and the Dow Jones Industrial Average rising marginally higher. The 10-year Treasury Yield rose to 4.45%, with 4.5% being viewed as a potential tipping point by some investors as it appears to be on track to return to last year’s highs.

Wednesday’s CPI report is expected to provide a deeper indication of whether the central bank will indeed consider implementing three rate cuts this year as previously mentioned by Fed Chair Jerome Powell. Investor anxiety was stoked last Thursday when Minneapolis Fed president Neel Kashkari claimed that the Fed may even forego interest rate cuts entirely this year depending on the trajectory of price pressures.

The post Futures Stall as Markets Await Fresh Inflation Data appeared first on theprimarymarket.com.

“The data came as a relief for those who were prepared for the worst,” noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Futures on the S&P 500 edged 0.1% higher, while those on the tech-heavy Nasdaq 100 gained 0.3%. Contracts listed on the Dow Jones Industrial Average remained little changed. Across the pond, the benchmark Stoxx Europe 600 index advanced by 0.5%, as did the MSCI Asia Pacific Index. The MSCI Emerging Markets Index gained 0.2%.

In Asia, the Japanese Nikkei 225 rose 1.9% to its strongest-ever close, edging close to the 40,000 mark. Bitcoin continued its recent rally, approaching the $62,000 mark amid rising demand from exchange-traded funds. BlackRock Inc.’s iShares Bitcoin Trust hit a record $612 million inflow.

The post Stocks Rise Following Relief Over Inflation Data appeared first on theprimarymarket.com.

Core PCE is set to come in at 2.8% for the month of January on an annual basis, marginally lower than December’s 2.9% reading. On a month-over-month basis, core PCE is set to be 0.4%, up from a 0.2% rise recorded in December. According to Bank of America, these figures are indicative that annualized inflation numbers may rebound above the Fed’s 2% inflation target.

Given that the Consumer Price Index (CPI) and the Producer Price Index (PPI) for January were hotter than expected, there is a risk that PCE could come out higher than expected, Wilmer Stith, bond portfolio manager for Wilmington Trust observed. “I don’t think they’re going to raise rates,” he said of the Fed’s monetary policy. “[But] maybe the Fed walks it back a little bit to two cuts instead of three.”

The post PCE Inflation Report Threatens to Delay Fed Rate Cuts appeared first on theprimarymarket.com.

Contracts listed on the Dow Jones Industrial Average were down 0.3%, as were those on the benchmark S&P 500, while those on the tech-heavy Nasdaq 100 were down by as much as 0.4%. Stocks have stagnated in the latter stages of February after reaching record levels, with the S&P 500 exceeding 5,000 for the first time in its history.

While the market received a major boost from the artificial intelligence boom, this was cut short as economic data suggested that inflation is remaining more stubborn than expected even amid signs of cooling. This has thus influenced market bets on when the Federal Reserve will introduce its first interest rate cut following its aggressive rate-hiking agenda.

The post U.S. Futures Decline Ahead of Inflation Report appeared first on theprimarymarket.com.

The benchmark S&P 500 index remained stagnant, as did the Dow Jones Industrial Average, thereby sitting marginally lower than their all-time high figures reached in the last week. The tech-heavy Nasdaq Composite index rose by 0.2%.

Stocks have largely lost momentum due to investors awaiting the incoming economic data as a means of understanding the health of the US economy. The PCE Index is also expected to provide an indication of when the Federal Reserve may decide to introduce interest rate cuts.

In the midst of a silent trading session, Bitcoin appeared to make the most noise, with the cryptocurrency rising to its highest level in two years, surpassing $57,000 per token. This saw a rise in the stocks of crypto exchanges such as Coinbase.

The post Stocks Hold Steady Ahead of Inflation Report appeared first on theprimarymarket.com.

Even with this data depleting investors’ hopes for an interest rate cut, the Fed remains adamant that it’s in no rush to lower borrowing costs as it will first look for evidence that inflation is retreating on a sustained basis. Still, Bloomberg Economics appears to be of the opinion that signs of returning inflation will not necessarily lead to monetary tightening either.

“The stage is set for monthly PCE inflation to jump following hot CPI and PPI reports. While that certainly won’t put the Fed at ease, we think policymakers will largely look through the January increase,” Bloomberg Economics wrote.

The post PCE Index Expected to Rise By Most in a Year appeared first on theprimarymarket.com.

This comes as uncertainties rise around the timing of the Federal Reserve’s interest rate cuts. In addition to the Federal Reserve’s actions, it remains uncertain whether inflation will once again rebound, thereby pushing the need for further inflation measures. Initially expected in March, the Fed is now expected by analysts to introduce interest rate cuts around May.

499 billion yuan worth of MLF loans are set to expire this month, with a net 1 billion yuan set to be injected into the Chinese economy as a result of rates remaining constant. The People’s Bank of China’s decision was not a surprising one, with 22 of 31 market watchers polled by Reuters, or 71%, all expecting rates to remain unchanged.

The post China Central Bank Holds Rates Constant appeared first on theprimarymarket.com.

Futures listed on the S&P 500 rose by 0.2% during premarket trading in New York, while those on the Nasdaq 100 advanced by 0.4%. Contracts listed on the Dow Jones Industrial Average edged higher by 0.1%. In Europe, the Stoxx 600 gained 0.1% while the MSCI World index remained relatively stagnant.

The dollar remained steady after its gains in the previous session, with the Bloomberg Dollar Spot index remaining unchanged. The euro was also little changed at $1.0702, while the greenback strengthened against the pound, with the British currency slipping 0.3% to $1.2557.

The post Stock Futures Rise Following CPI Inflation Data appeared first on theprimarymarket.com.

“With that outlook, I really see the first move coming sometime in the summertime,” Bostic explained. The Fed’s interest rate remains at a 23-year high. Still, the Atlanta Fed President was impressed by the strength of the US labor market, with 353,000 jobs added as reported by January’s monthly jobs report.

Still, despite this positive development, Bostic questions how quickly inflation can fall below 2%, adding that a strong labor market may keep prices elevated. Because low unemployment means that more people have money to spend, businesses feel that they can raise prices.

The post Atlanta Fed President Dashes Hopes for Interest Rate Cut appeared first on theprimarymarket.com.

Both CPI measures beat the expectations of economists polled by Bloomberg, with forecasts being a 0.3% monthly gain and a 3.4% annual rise. While February’s monthly gains fell in line with March’s figures, March’s annual gain exceeded the 3.4% annual rise posted in February.

Looking at “core” inflation, which excludes more volatile food and energy costs, the CPI rose by 0.4% compared to February and 3.8% on a yearly basis. Economists expected a 0.3% monthly gain and a 3.7% year-over-year rise, with actual figures outpacing both. Should inflation continue this upward trend, the Federal Reserve may reconsider its stance on introducing interest rate cuts later in the year.

The post Consumer Price Index Comes in Hotter in March appeared first on theprimarymarket.com.

Contracts listed on the tech-heavy Nasdaq Composite index rose 0.3% higher, with futures on the S&P 500 and the Dow Jones Industrial Average rising marginally higher. The 10-year Treasury Yield rose to 4.45%, with 4.5% being viewed as a potential tipping point by some investors as it appears to be on track to return to last year’s highs.

Wednesday’s CPI report is expected to provide a deeper indication of whether the central bank will indeed consider implementing three rate cuts this year as previously mentioned by Fed Chair Jerome Powell. Investor anxiety was stoked last Thursday when Minneapolis Fed president Neel Kashkari claimed that the Fed may even forego interest rate cuts entirely this year depending on the trajectory of price pressures.

The post Futures Stall as Markets Await Fresh Inflation Data appeared first on theprimarymarket.com.

“The data came as a relief for those who were prepared for the worst,” noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

Futures on the S&P 500 edged 0.1% higher, while those on the tech-heavy Nasdaq 100 gained 0.3%. Contracts listed on the Dow Jones Industrial Average remained little changed. Across the pond, the benchmark Stoxx Europe 600 index advanced by 0.5%, as did the MSCI Asia Pacific Index. The MSCI Emerging Markets Index gained 0.2%.

In Asia, the Japanese Nikkei 225 rose 1.9% to its strongest-ever close, edging close to the 40,000 mark. Bitcoin continued its recent rally, approaching the $62,000 mark amid rising demand from exchange-traded funds. BlackRock Inc.’s iShares Bitcoin Trust hit a record $612 million inflow.

The post Stocks Rise Following Relief Over Inflation Data appeared first on theprimarymarket.com.

Core PCE is set to come in at 2.8% for the month of January on an annual basis, marginally lower than December’s 2.9% reading. On a month-over-month basis, core PCE is set to be 0.4%, up from a 0.2% rise recorded in December. According to Bank of America, these figures are indicative that annualized inflation numbers may rebound above the Fed’s 2% inflation target.

Given that the Consumer Price Index (CPI) and the Producer Price Index (PPI) for January were hotter than expected, there is a risk that PCE could come out higher than expected, Wilmer Stith, bond portfolio manager for Wilmington Trust observed. “I don’t think they’re going to raise rates,” he said of the Fed’s monetary policy. “[But] maybe the Fed walks it back a little bit to two cuts instead of three.”

The post PCE Inflation Report Threatens to Delay Fed Rate Cuts appeared first on theprimarymarket.com.

Contracts listed on the Dow Jones Industrial Average were down 0.3%, as were those on the benchmark S&P 500, while those on the tech-heavy Nasdaq 100 were down by as much as 0.4%. Stocks have stagnated in the latter stages of February after reaching record levels, with the S&P 500 exceeding 5,000 for the first time in its history.

While the market received a major boost from the artificial intelligence boom, this was cut short as economic data suggested that inflation is remaining more stubborn than expected even amid signs of cooling. This has thus influenced market bets on when the Federal Reserve will introduce its first interest rate cut following its aggressive rate-hiking agenda.

The post U.S. Futures Decline Ahead of Inflation Report appeared first on theprimarymarket.com.

The benchmark S&P 500 index remained stagnant, as did the Dow Jones Industrial Average, thereby sitting marginally lower than their all-time high figures reached in the last week. The tech-heavy Nasdaq Composite index rose by 0.2%.

Stocks have largely lost momentum due to investors awaiting the incoming economic data as a means of understanding the health of the US economy. The PCE Index is also expected to provide an indication of when the Federal Reserve may decide to introduce interest rate cuts.

In the midst of a silent trading session, Bitcoin appeared to make the most noise, with the cryptocurrency rising to its highest level in two years, surpassing $57,000 per token. This saw a rise in the stocks of crypto exchanges such as Coinbase.

The post Stocks Hold Steady Ahead of Inflation Report appeared first on theprimarymarket.com.

Even with this data depleting investors’ hopes for an interest rate cut, the Fed remains adamant that it’s in no rush to lower borrowing costs as it will first look for evidence that inflation is retreating on a sustained basis. Still, Bloomberg Economics appears to be of the opinion that signs of returning inflation will not necessarily lead to monetary tightening either.

“The stage is set for monthly PCE inflation to jump following hot CPI and PPI reports. While that certainly won’t put the Fed at ease, we think policymakers will largely look through the January increase,” Bloomberg Economics wrote.

The post PCE Index Expected to Rise By Most in a Year appeared first on theprimarymarket.com.

This comes as uncertainties rise around the timing of the Federal Reserve’s interest rate cuts. In addition to the Federal Reserve’s actions, it remains uncertain whether inflation will once again rebound, thereby pushing the need for further inflation measures. Initially expected in March, the Fed is now expected by analysts to introduce interest rate cuts around May.

499 billion yuan worth of MLF loans are set to expire this month, with a net 1 billion yuan set to be injected into the Chinese economy as a result of rates remaining constant. The People’s Bank of China’s decision was not a surprising one, with 22 of 31 market watchers polled by Reuters, or 71%, all expecting rates to remain unchanged.

The post China Central Bank Holds Rates Constant appeared first on theprimarymarket.com.

Futures listed on the S&P 500 rose by 0.2% during premarket trading in New York, while those on the Nasdaq 100 advanced by 0.4%. Contracts listed on the Dow Jones Industrial Average edged higher by 0.1%. In Europe, the Stoxx 600 gained 0.1% while the MSCI World index remained relatively stagnant.

The dollar remained steady after its gains in the previous session, with the Bloomberg Dollar Spot index remaining unchanged. The euro was also little changed at $1.0702, while the greenback strengthened against the pound, with the British currency slipping 0.3% to $1.2557.

The post Stock Futures Rise Following CPI Inflation Data appeared first on theprimarymarket.com.

“With that outlook, I really see the first move coming sometime in the summertime,” Bostic explained. The Fed’s interest rate remains at a 23-year high. Still, the Atlanta Fed President was impressed by the strength of the US labor market, with 353,000 jobs added as reported by January’s monthly jobs report.

Still, despite this positive development, Bostic questions how quickly inflation can fall below 2%, adding that a strong labor market may keep prices elevated. Because low unemployment means that more people have money to spend, businesses feel that they can raise prices.

The post Atlanta Fed President Dashes Hopes for Interest Rate Cut appeared first on theprimarymarket.com.