U.S. CPI and retail sales both cooled in April, major indexes opened higher

Major U.S. stock indexes opened higher on Wednesday (15th) after the latest U.S. data showed that the Consumer Price Index (CPI) and retail sales both cooled in April. After the release of the CPI report, the market revised its expectations for the Federal Reserve (Fed) to cut interest rates this year. expected.

Major U.S. stock indexes opened higher on Wednesday (15th) after the latest U.S. data showed that the consumer price index (CPI) and retail sales both cooled in April. After the CPI report was released, the market revised its expectations for the speed of interest rate cuts by the Federal Reserve (Fed) this year.
As of press time, the Dow Jones Industrial Average rose more than 210 points, or nearly 0.5%, the Nasdaq Composite Index rose nearly 100 points, or nearly 0.6%, the S&P 500 Index rose nearly 0.6%, and the Philadelphia Semiconductor Index rose more than 1%.
Data released by the U.S. Bureau of Labor Statistics (BLS) on Wednesday showed that the CPI in April increased by 3.4% year-on-year, which was expected to be slightly lower than the previous value of 3.5%; the CPI in April increased by 0.3% from the previous quarter, which was lower than expected and the previous value of 0.4%.
The Fed\’s favored inflation indicator, core CPI, which excludes food and energy costs, increased by 3.6% in April, in line with market expectations, lower than the 3.8% value in March; on a monthly basis, core CPI increased by 0.3% in line with market expectations, lower than the previous month. The previous value in March was 0.4%, the first decline in six months.
It\’s worth noting that while these data suggest inflation is resuming its downward trend, the Fed would like to see more data that is more conclusive.
Fed Chairman Jerome Powell said yesterday the central bank needed to remain patient and let restrictive policies take effect while some officials predicted there might not be any interest rate cuts at all this year.
After the data was released, the exchange rate market raised its expectations for the speed of interest rate cuts by the Fed this year.
It comes as U.S. retail sales stalled in April, with downward revisions to growth in the two months before showing higher borrowing costs and rising debt prompting consumers to be more cautious.
Specifically, data released by the U.S. Department of Commerce on the same day showed that retail sales in April grew 0% from the previous quarter, lower than market expectations of 0.4%. The previous value was revised from 0.7% to 0.6%.
As of 21:00 Taipei time on Wednesday (15th): the Dow Jones Industrial Average rose 206.67 points, or 0.52%, to temporarily trade at 39,764.78 points; the Nasdaq Composite Index rose 109.30 points, or 0.66% to temporarily trade at 16,620.48 points; the S&P 500 Index rose 28.63 points, or 0.55% tentatively reported at 5,275.31 points, fee and half rose 50.92 points or 1.04%, tentatively quoted at 4,954.86 points. TSMC ADR rose 1.33% to US$153.97 per share. The 10-year U.S. Treasury bond yield fell to 4.369%. New York light crude oil fell 0.88% to US$77.33 per barrel. Brent crude oil fell 0.87% to $81.66 per barrel Gold rose 0.47% to $2,370.90 per ounce The U.S. dollar index fell to 104.390 Stocks in focus: GameStop (GME-US) Shares fell 14.30% to $41.78 per share in early trading GameStop and AMC (AMC -US) surged again overnight by 60% and 32%. Both stocks doubled their gains in the past week. All these crazy performances brought sensory shock to the market, just like returning to the \”Retail Investors vs. Wall Street\” in 2021. In the midst of pomp and circumstance.
However, many Wall Street strategists now say that this new retail enthusiasm for short-selling may ultimately be far from reaching the level of madness three years ago and may be difficult to replicate now.
Alphabet (GOOGL-US) shares rose 0.22% to $170.71 per share in early trading. Alphabet\’s Google released an artificial intelligence (AI) search engine at the annual I/O developer conference held yesterday, sending a clear signal to other competitors such as OpenAI to defend search. Engine leadership position.
At the same time, the company also launched “Gemini 1.5 Pro”, a new member of the AI ​​series model Gemini.
New York Community Bank (NYCB-US) shares rose 0.64% to $3.92 per share in early trading. New York Community Bancorp (New York Community Bancorp) agreed to sell approximately $5 billion of its mortgage warehouse loan portfolio to JPMorgan Chase (JPM-US). It rose nearly 5% in premarket trading Wednesday.
The deal with the largest U.S. bank by assets, announced late Tuesday, will strengthen NYCB\’s liquidity; the bank plans to invest the proceeds from the sale in cash and securities.
Key economic data today: The U.S. CPI annual growth rate in April was 3.4%, expected to be 3.4%, the previous value was 3.5% The U.S. CPI monthly growth rate in April was 0.3%, the previous value was 0.4%, the previous value was 0.4% The U.S. core CPI annual growth rate in April was 3.6% The monthly growth rate of U.S. core CPI in April is expected to be 0.3%, the previous value is 0.3%, and the previous value is 0.4%. The monthly growth rate of U.S. retail sales in April is expected to be 0.0%, and the previous value is 0.4%. Growth rate reported at 0.2%, expected 0.2%, previous value 1.1%, US May New York Fed Manufacturing Index reported – 15.6, expected – 10 previous value – 14.3 Wall Street analysis: Goldman Sachs chief US equity strategist David Kostin recently stated that between now and the end of this year The S&P 500 is unlikely to continue rising.
In the latest interview, Kostin reiterated his target of 5,200 points for the S&P 500 by the end of this year and pointed out that \”returns between now and the end of this year will be roughly flat.\”
The forecast is slightly below the benchmark index\’s current levels.
UBS said the current rally was the start of a massive summer rally as panic in stocks last month subsided.
UBS believes the S&P 500 could reach 5,500 points by the end of this year, according to a report released by the bank a few days ago.
That means the index has room for around 5% upside from current levels.

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