Last Updated: 4:01 PM EST
Stock indices finished today’s trading session mixed. The Nasdaq 100 (NDX) and the S&P 500 (SPX) gained 1.13% and 0.49%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) fell 0.2%.
The U.S. Consumer Price Index (CPI) rose less than expected in February as it increased by 0.2% month-over-month and 2.8% year-over-year. Core CPI, excluding food and energy, also rose 0.2% month-over-month and 3.1% year-over-year.
These numbers suggest that inflation may be cooling and could give the Federal Reserve some room to provide support to the volatile markets. In addition, the shelter index, which accounts for a significant portion of the CPI, rose by 0.3% in February, while airline fares and gasoline prices declined.
Interestingly, the softer-than-expected CPI data has led to hopes of a “Fed Put.” This is when the central bank intervenes to support the market. Economist Mohamed El-Erian believes that the data justifies the expectations for support from the Fed, especially since the market is worried about the impact of tariffs on economic growth and inflation. As a result, the odds of a June rate cut are now above 50%.
While the CPI data is positive news, some economists are warning that the impact of tariffs on inflation is still unknown. Tariffs on Chinese goods are ongoing, and additional charges may be added in April. This uncertainty could limit the Fed’s ability to cut rates despite the cooling inflation figures.
Furthermore, some economists, such as RSM U.S. Chief Economist Joseph Brusuelas, are warning about the potential for stagflation – which is a combination of slow economic growth and high inflation – due to sticky inflation in the services sector.
First Published: 4:43 AM EST
U.S. stock futures climbed Wednesday as investors awaited the release of the latest Consumer Price Index (CPI) data. This key inflation report will provide valuable insights into the Federal Reserve’s future monetary policy. Meanwhile, futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.36%, 0.21%, and 0.31%, respectively, at 4:29 a.m. EST, March 12.
Tuesday’s trading session saw major indices decline, with the Dow Jones, the S&P 500, and the Nasdaq Composite (NDAQ) all closing lower by 1.1%, 0.8%, and 0.2%, respectively. The market’s reaction reflects ongoing concerns about trade policy and its potential impact on economic growth.
Adding to market worries was President Donald Trump’s plans to double tariffs to 50% on Canadian steel and aluminum in response to Ontario’s 25% tariff on electricity exports to the U.S. Later, a Trump advisor clarified the higher rate would not apply after Ontario agreed to drop the extra charge.
Looking ahead, Wednesday’s CPI report is a key focus for investors. Economists anticipate a 0.3% monthly increase and a 2.9% year-over-year rise in headline inflation.
The Fed is currently navigating a complex scenario, managing inflation while dealing with the potential economic impact of tariffs. The market is closely watching for signs of whether the central bank will maintain its current stance or consider interest rate cuts.
On the earnings front, Adobe (ADBE), UiPath (PATH), ZIM Integrated Shipping (ZIM), Crown Castle (CCI), and SentinelOne (S) are scheduled to report quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.274%. Simultaneously, WTI crude oil futures are trending higher, hovering near $66.68 per barrel as of the last check.
Elsewhere, European indices opened higher today, following the European Union’s announcement of retaliatory tariffs on U.S. steel and aluminum imports.
Asia-Pacific Markets Traded Mixed on Wednesday
Asia-Pacific indices were mixed today, as Wall Street’s slump as global tariff concerns weighed on investor sentiment.
Notably, Hong Kong’s Hang Seng Index was down 0.76%. Further, China’s Shenzhen Component and Shanghai Composite indices declined 0.17% and 0.23%, respectively. However, Japan’s Nikkei and Topix indices closed higher by 0.07% and 0.91%, respectively.
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