Stock futures and bond losses intensified on Thursday as inflation data came in higher than expected, leading to speculation that the Federal Reserve may delay any interest rate cuts. The S&P 500 contracts fell over 1% following the release of the consumer price index, highlighting the challenges policymakers face in achieving the 2% inflation target.
The core consumer price index, which excludes food and energy costs, rose 0.4% from February and 3.8% from a year ago, surpassing expectations for the third consecutive month. This data has raised doubts about a potential rate cut in June, with market analysts suggesting that a rate cut in July or September is more likely.
The reaction on Wall Street was mixed, with some experts believing that the Fed still has a bias to cut rates, while others see the recent inflation data as a sign that a June rate cut is off the table. The uncertainty surrounding future rate cuts has also led to increased volatility in the stock market.
Overall, the strong inflation readings have cast doubt on the Fed’s confidence in achieving its inflation target, leading to speculation that interest rates may remain higher for longer than previously anticipated. The market will be closely watching for any further developments in the coming months.
In corporate news, key events this week are expected to impact market movements in stocks, currencies, cryptocurrencies, bonds, and commodities. Investors are advised to stay informed and monitor market trends closely.
This story was produced with the assistance of Bloomberg Automation. For more news and updates, visit bloomberg.com.
