- Stock prices rose, and the S&P 500 index rose to near all-time highs.
- The downward revision of the producer price index in March contributed to curbing inflation concerns.
- Fed Chairman Jerome Powell has indicated that interest rates need to remain high for an extended period of time.
The S&P 500 closed just below its all-time high on Tuesday and the Nasdaq set a new record as markets prepare for April’s important inflation report.
The producer price index rose 0.5% in April, contrary to expectations of a 0.3% rise, but the March statistics were revised to a 0.1% decline. That should be enough to dampen stubborn inflation concerns for now, and investors remain optimistic that rates will be cut by September.
Many people are waiting for the release of the consumer price index on Wednesday before deciding whether to exit the market. Meanwhile, traders focused on comments from Federal Reserve Chairman Jerome Powell, who suggested interest rates should be kept high for a longer period of time.
“Tomorrow’s CPI report becomes even more important if there are signs that the path to price stability is gaining momentum,” said Quincy Crosby, chief global strategist at LPL Financial. “The most important question hanging over the market, and potential dilemma, is whether inflation is creeping up at the same time that broader economic conditions are softening, making the Fed’s job increasingly difficult. Thing.”
Other notable developments included a sustained rally in meme stocks, with the likes of GME and AMC aggressively rising into their second day.
Here are the U.S. indices as of Tuesday’s close at 4 p.m.
Here’s what else is happening today:
In Commodities, Fixed Income and Cryptocurrencies:
- West Texas Intermediate crude oil fell 0.10% to $77.98 per barrel. Brent crude oil, the international benchmark, fell 0.15% to $82.38 per barrel.
- Gold rose 0.37% to $2,358.21 an ounce.
- The yield on the 10-year Treasury note fell 3 basis points to 4.449%.
- Bitcoin fell 2.1% to $61,556.
