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US stocks rose on Tuesday as investors await a key inflation report for March.
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The CPI report is set to be released Wednesday, and investors are expecting a continued slowdown in inflation.
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Bond yields slipped after rising as investors adjusted their outlook for rates in the last week.
US stocks edged higher on Tuesday as investors await a key inflation report later this week.
The March consumer price index report is set to be released Wednesday morning, and investors expect a continued decline in inflation. Current estimates suggest year-over-year core CPI will drop to 3.7% compared to the previous reading of 3.8%, while month-over-month Core CPI is expected to drop to 0.3% compared to the prior reading of 0.4%.
The March CPI report will help inform when the Federal Reserve might cut interest rates. Current projections suggest about a 50-50 chance the first rate cut will arrive at the Fed’s June FOMC meeting, but an inflation report outside of consensus estimates would impact those probabilities in a big way.
“It’s exactly because US labor-market indicators are so ambiguous that makes the US inflation data so much more important as a driver of the outlook for Fed policy in the next few months. Tomorrow’s March CPI report will be paramount,” Macquarie strategist Thierry Wizman said.
Bond yields dropped, with the 10-year Treasury slipping four basis points to 4.384%.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Tuesday:
Here’s what else is going on today:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil dropped by 0.07% to $86.37 a barrel. Brent crude, the international benchmark, jumped by 0.11% to $90.48 a barrel.
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Gold jumped 0.78% to $2,369.40 per ounce.
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The 10-year Treasury yield fell four basis points to 4.384%.
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Bitcoin dropped by 1.63% to $70,460.
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Source Agencies
