Stocks (^DJI, ^IXIC, ^GSPC) are gearing up for March’s CPI (Consumer Price Index) and PPI (Producer Price Index) inflation prints due out this week. In turn, the pressure has turned up for the Federal Reserve as investors begin to price in less interest rate cuts for 2024. JPMorgan Chase & Co. (JPM) CEO Jamie Dimon outlined his concerns about “stickier inflation and higher rates” in his annual shareholder letter.
Over in the commodity sector, gold futures (GC=F) edge higher while oil prices (CL=F, BZ=F) tick up to a multi-month high around geopolitical tensions in the Middle East.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
Editor’s note: This article was written by Luke Carberry Mogan.
Video Transcript
– So let’s get right to it– the three things that you need to know, your roadmap for the trading day. Yahoo Finance’s Josh Schafer, Jennifer Schonberger, and Ines Ferré have more.
JOSH SCHAFER: Hey, Seana. Stock futures edging slightly higher as investors await fresh inflation data. Wednesday’s CPI print will provide more insight into the health of the economy and perhaps more clarity on the timing of the Fed’s next interest rate cut. Traders are watching for signs that inflation returned to its downward trend in March after signs of stickiness in readings earlier this year.
JENNIFER SCHONBERGER: And the great rate debate investors continue to be concerned that hot economic data and mixed messages from Federal Reserve officials could cause a central bank to scale back the number of rate cuts this year. Indeed, investors now only pricing in around two rate cuts for this year, down from the three that Fed officials themselves have estimated for the year. Meanwhile, odds for the first rate cut in June also dropping as low as 49% in futures trading earlier this morning as investors debate whether the central bank could actually begin cutting rates in June.
INES FERRE: And keep your eye out on commodities. Gold hitting another record extending its 2024 rally after closing at $2,351. Meanwhile, oil reached for recent multi-month highs as the market assessed easing tensions in the Middle East. But Goldman Sachs says oil prices won’t likely reach $100 this year.
