All articles tagged with #cpi report
The November US inflation data appeared promising with lower-than-expected inflation rates, but uncertainties remain due to data collection issues following the government shutdown, leading to skepticism about the report's accuracy. Despite this, markets reacted positively, driven by the CPI figures and strong earnings reports, though the reliability of the data is questionable.
US stock futures rose as investors awaited the CPI report, with tech stocks rebounding after recent sell-offs driven by Oracle's project setbacks, while Micron forecasted strong earnings fueled by AI demand, amidst concerns over inflation data reliability and potential market volatility in 2026.
The US government shutdown has delayed key economic data, including inflation and jobs reports, complicating the Federal Reserve's decision-making on interest rates amid ongoing debates and limited official statistics, while global economic indicators from other countries continue to influence markets.
The Federal Reserve is likely to cut interest rates next week, supported by a benign CPI report that alleviates concerns and amid a data drought that complicates policy decisions, with a December cut also probable. The ongoing data blackout, including delayed jobs and inflation reports, poses challenges for the Fed's decision-making process.
JPMorgan predicts how the stock market will respond to the upcoming Consumer Price Index (CPI) report on Friday, highlighting potential market movements based on inflation data and economic indicators.
The Bureau of Labor Statistics has recalled staff to prepare the September consumer price index report, crucial for determining next year's Social Security cost-of-living adjustment, after a government shutdown delayed its release, potentially impacting the timing of the COLA announcement and the Federal Reserve's policy meeting.
Wall Street is expressing concerns about the reliability of government inflation data just before the release of the Consumer Price Index (CPI) report, raising questions about the accuracy of economic indicators that influence market decisions.
The stock market experienced a decline with the Dow falling nearly 300 points, while the S&P 500 remained flat and the Nasdaq rose following the June CPI report; JPMorgan exceeded earnings estimates.
US Treasury yields rose as traders increased bets on a Federal Reserve rate cut following the latest consumer price index report, which matched economist expectations. Despite initial gains in government bonds, a selloff occurred, influenced by rising oil prices, leaving the long-term outlook uncertain.
The consumer price index (CPI) report shows that inflation rose to 3.5% in March, driven by increasing costs of rent and gasoline, prompting questions about potential Federal Reserve interest rate cuts. Core inflation, excluding food and energy, remained at 3.8%. The rise in inflation may delay expected rate cuts, with some economists predicting a decrease in September at the earliest. Stock prices weakened in response to the news, and President Biden emphasized the need to further lower costs. Gas prices rose due to the Russia-Ukraine war, while rent and some service costs continued to increase, though grocery prices remained relatively stable.
Despite the hotter-than-expected CPI inflation report for February, BlackRock's Rick Rieder believes that the Federal Reserve still has "breathing room." The S&P 500 ended at a record high, seemingly unfazed by the inflation reading, indicating market confidence in the Fed's ability to manage the situation.
Despite a second hotter than expected CPI report, CME Fedwatch rate cut odds for June barely changed, but odds did shift for November and December. The Fed signaled a rate cut for June, and the market has priced this in, with expectations for no cut in March and increased odds for no cut in May. The market remained unfazed by the hot CPI data until November, when expectations for higher rates rose. Fed officials have indicated a willingness to lower rates despite inflation readings, and the Fed's decision to cut in June seems set, barring significant CPI data changes. The article also discusses the potential impact of asset bubbles, recession odds, and ongoing inflationary factors.
The market's muted reaction to February's Consumer Price Index (CPI) report, which showed higher-than-expected inflation, can be attributed to the fact that it was "clearly braced" for the results, according to analysts. Despite the hotter-than-expected inflation reading, the Dow remained higher, indicating that the market had already priced in the possibility of increased inflation.
The February Consumer Price Index (CPI) report is expected to show a 0.4% monthly growth, driven by a spike in gas prices, with an annual growth rate of 3.1%. Despite the persistent inflation, economists and Fed officials still anticipate progress and potential rate cuts in 2024. Bond traders are predicting between three and four rate cuts this year, with a 60% chance of a quarter-point cut in June. The Fed is closely monitoring the inflation rate and may consider easing policy if disinflation continues.
The US dollar initially fell in response to the CPI report, but quickly reversed and gained strength. The market had priced in potential Fed cuts, but the reaction to the report suggests a possible buying of the US dollar ahead of the Federal Open Market Committee (FOMC) meeting. The report itself revealed some concerning factors, including a small miss in m/m CPI, higher real weekly earnings, and increased services less rent of shelter. The market's reaction may be influenced by pre-Fed positioning, as well as the upcoming 30-year Treasury auction.