US Stocks Close Flat Ahead of CPI Data

At the end of a turbulent North American session on Monday, US equities remained mostly steady as a solar eclipse provided some diversion ahead of the key CPI inflation data and the start of the first-quarter earnings season.

The Nasdaq opened a new tab and finished marginally up, while the S&P 500 and the Dow Jones registered modest losses. Following Friday’s higher than expected job data, benchmark US Treasury rates reached their highest level since November, keeping all three in check.

This news increased the likelihood that the Federal Reserve would take longer than anticipated to execute its first interest rate drop during its monthly meetings of the Federal Open Market Committee (FOMC).

With the possibility that the Fed may take longer to ease interest rates and the increased probability that a rate drop would happen at the July FOMC meeting rather than the June one, Wall Street is modifying its expectations accordingly.

The Labour Department’s March Consumer Price Index (CPI) data, which is anticipated to be released on Wednesday, is predicted to indicate a little slowdown in monthly price growth as well as a tiny decline in the annual core number—which does not include volatile food and energy prices.

Seeing the eclipse is probably a better use of your day than trading stocks. According to some economists, there is no real desire for people to change their stance in front of the CPI.

Year-over-year summary The CPI is predicted to pick up steam, increasing from 3.2% in February to 3.4% in March, highlighting inflation’s rambling return to the Fed’s 2% annual objective.

President of the Federal Reserve Bank of Chicago Austan Goolsbee stated on Monday that the bank needs to assess how long it can continue its tight policies without having a negative impact on the US economy.