Stock indices finished today’s trading session in the red, with the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) all experiencing declines. The Nasdaq 100 fell by 1.15%, the S&P 500 by 0.65%, and the Dow Jones Industrial Average by 0.49%.
The University of Michigan released its preliminary results on consumer inflation expectations over the next five years, revealing that consumers now expect inflation to be 2.9%, unchanged from the previous month. However, consumer sentiment came in lower than expected at 76.5, a decrease from last month’s reading of 76.9. Additionally, consumer expectations for March were lower than forecasted, with a print of 74.6 compared to the expected 75.1.
The hot inflation report has increased uncertainty about the timing of the Federal Reserve’s interest rate cuts, causing U.S. futures to inch lower on Friday morning. Economists have revised their predictions for interest rate reductions, with some delaying their forecast to June due to the disappointing inflation data.
In corporate news, Tesla (TSLA) fell 4.1% after a stock downgrade, while Microsoft (MSFT) hit a new 52-week high. The U.S. 10-year treasury yield was down, and WTI crude oil futures trended higher.
In Asia-Pacific markets, indices ended on a mixed note following the higher-than-expected rise in U.S. producer prices. The People’s Bank of China left its one-year medium-term lending facility rate unchanged at 2.5%. Hong Kong’s Hang Seng index closed lower, while China’s Shanghai Composite and Shenzhen Component indices ended higher. Japan’s Nikkei index finished lower, while the Topix index ended up.
Overall, investors are continuing to evaluate the impact of the latest U.S. inflation data on the Fed’s interest rate cut trajectory, with European indices expected to open lower today.
