Stock futures fell as Wall Street held off on its second major inflation report.
futures tied to Dow Jones Industrial Average While it fell by 60 points (0.2%), S&P500 futures It also fell by 0.2%. Nasdaq 100 futures It fell by 0.16%.
Stocks went into bearish mode on Wednesday as investors took stock of March’s high inflation numbers and heightened concerns that the Federal Reserve would cut interest rates less than expected. Minutes from last month’s Fed meeting also revealed that some officials remain concerned about the path of inflation toward the central bank’s 2% target.
Goldman Sachs Chief Economist Jan Hatzius has revised the company’s interest rate cut target to 2024 after consumer prices rose 0.4% year-on-year in March and rose 3.5% year-on-year. He urged them to adjust from three times to two times. He now expects the first rate cut to occur. In July.
“We’re rebalancing the labor market and I’m optimistic that inflation will be subdued over time,” he said Wednesday on CNBC’s “Closing Bell.” None of this has changed for me. “I haven’t done it yet,” he said. “What has changed, however, is the timing of the Fed’s adjustment, as it will depend heavily on month-over-month inflation news, which was clearly disappointing.”
of Dow Jones Industrial Average It led Wednesday’s decline, dropping 1.09%. S&P500 It fell by 0.95%.of Nasdaq Composite It fell by 0.84%. Ten of the S&P 500’s 11 sectors ended in negative territory, with the real estate sector bearing the brunt of the selling pressure, dropping more than 4%. The yield on 10-year Treasuries rose above 4.5%, and the yield on 2-year Treasuries rose to nearly 5%.
The market’s next major inflation test will take place on Thursday with the March Producer Price Index. Economists polled by Dow Jones expect wholesale prices to rise 0.3% in March, or 0.2% excluding food and energy. Separately, weekly unemployment claims are also expected to be filed before the bell.
The early stages of earnings season continue on Thursday with the following results announced: carmax, Fastenal and constellation brand before the bell. The unofficial start to the period will be Friday’s big bank earnings from JPMorgan, Wells Fargo and Citigroup.
