U.S. stocks rose on Tuesday, declining in sales since the start of the week as investors reviewed new inflation figures from Washington showing that prices in March once again accelerated to a 40-year high.
The S&P 500 rose 0.7%, while the Dow skipped about 130 points at the start of trading. Nasdaq Composite gained 1.1% after closing slightly below Monday. At the time, Treasury production was declining slightly, but the 10-year average yield remained above 2.7%, the highest level since January 2019.
The move follows a day on Wall Street to kick off a week marked by growing concern over the recession such as the Ukrainian war, the closure of COVID-19 in China and the prospect of a more aggressive Federal Reserve. Investors are looking forward to the start of the payday season with additional economic data to be released this holiday week.
Markets measure the latest US inflation rate The Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) rose 8.5% in March compared to the same month last year, according to a recent report released on Tuesday. This figure shows the fastest increase since December 1981 and follows a year-on-year increase of 7.9% in February. When we go into the report, the consensus economists wanted to jump 8.4% in March, according to reports.
The red flag comes as investors face the possibility that Fed officials will take drastic measures to curb inflation after reading a few minutes last week at a mid-March bank meeting suggested that "many" policymakers "would have preferred a 50-point increase in benchmark interest rates. last month.
"I think the Fed is already committed to the aggressive rate hike," Charles Schwab's global investment strategist Jeffrey Kleintop told. Tuesday's CPI data "may not have as much impact [on the market] as it could have, say, a few months ago."
While investors have been warned that Fed policymakers will be able to fight back sharply in their efforts to fight inflation, there are already concerns that rising inflation could lead to a recession. Strategies have begun to discuss possible economic downturns in recent weeks, especially as economists at Deutsche Bank have recently warned that central bank approaches could slow growth in the second half of 2023.
Some have said it is too early to make such a call but it may be on the table.
"I would say it's almost time to throw the coin that the economy will go into recession by the end of the year," said Dreyfus and Mellon's chief economist and chief strategist Vince Reinhart.
12:39 p.m. ET: JPMorgan shares have fallen almost 16% year-on-year so far
JPMorgan is the first major bank to unveil its first-quarter results on Wednesday as it begins its pay season. Analysts estimate that the company will report profits per share (EPS) of $ 2.72, according to consensus estimates.
The finance market has reasonably been the mainstay of the market for a year and a half amid concerns over US-Russia bank ties and concerns about the economic downturn. In his latest annual letter to shareholders, JPMorgan CEO Jamie Dimon warned the bank that it would lose about $ 1 billion over the course of the war.
Although the central bank has said it is not concerned about its direct exposure to Russia, the institution is concerned about the "second outcome and collateral" problem and sanctions that exist in many companies and countries.
Shares of JPMorgan have fallen slightly in intraday trading by 0.3% to $ 132.64 piece from 12:37 p.m. ET. Stocks have declined 15.8% year-on-year.
12:18 p.m. ET: Lululemon is rising after the expansion of the trading and reselling system
Shares of sportswear retailer Lululemon (LULU) have risen to 6% at the highest daily level since Jan. 3 follows the announcement that the company will expand its "Lululemon Like New" trading system and resell nationwide.
Lululemon Like New will be available to customers throughout the U.S. from World Day, April 22 after the successful pilot of two regional pilots in 2021. The retailer will also invest 100% of the profits to support its Impact Agenda, which includes making 100% products sustainable. building materials and end-of-use solutions by 2030.
LULU increased 4.4% to $ 384.80 per share from 12:14 p.m. ET, which is likely to be developed by a recent day in the broader market after CPI data came in much worse than expected, with significant figures falling just below the consensus numbers.
The S&P 1500 Consumer Discretionary Index increased by about 2.4%.
—
9:30 a.m. ET: Stocks push forward despite report showing red-hot inflation in March
Here were the main moves in markets during Tuesday's opening bell:
8:35 a.m. ET: March CPI climbed more-than-expected 8.5% over last year
7:10 a.m. ET: Contracts on S&P 500, Dow, and Nasdaq flat as investors await CPI print
Here's how the main indexes fared in futures trading ahead of Tuesday's opening bell:
6:40 a.m. ET: US small business sentiment falls as inflation worries rise
Confidence levels among small business owners across the country further waned in March, and a higher number of mom-and pop-shop operators reported inflation as their single most important concern, a survey out Tuesday showed.
The National Federation of Independent Business said its Small Business Optimism Index dropped 2.4 points to 93.2 last month to mark the third straight month of readings below the 48-year average of 98. The index has declined every month this year so far.
Of respondents, 31% identified inflation as their single most important problem, up 5 points from February's survey. The figure is the largest share of participants citing inflation as their biggest concern since the first quarter of 1981, also replacing worries about "labor quality" as the number one problem confronting small businesses.
High inflation caused by shortages, massive fiscal stimulus and low interest rates have pressured the economy in recent months.
6:10 p.m. ET Monday: Stock futures little change ahead of Tuesday's inflation data
Here's where markets were trading ahead of the overnight session on Monday:
Read More:
They just revealed what they believe are the ten best stocks for investors to buy right now…
Courtesy Grizler.com
