Home Economy News Stocks dip from record highs with US inflation data on deck

Stocks dip from record highs with US inflation data on deck


Stocks dip from record highs with US inflation data on deck By Reuters

Breaking News



Published Mar 10, 2024 08:28PM ET
Updated Mar 11, 2024 04:46PM ET

© Reuters. Stacked containers are seen at an industrial port in Tokyo, Japan February 15, 2024. REUTERS/Issei Kato

By Chuck Mikolajczak

NEW YORK (Reuters) -A gauge of global stocks retreated for a second straight session on Monday, easing further from a record high ahead of U.S. inflation data this week which could heavily influence the Federal Reserve’s interest rate path.

Stocks have hit multiple record highs this year, but declined on Friday following a mixed U.S. payrolls report that did little to alter expectations for the Fed to begin cutting rates in June.

U.S. inflation data is due on Tuesday in the form of the consumer price index (CPI), with expectations for a monthly increase of 0.4% and 3.1% on an annual basis.

The Dow Jones Industrial Average rose 46.97 points, or 0.12%, to 38,769.66. The S&P 500 lost 5.74 points, or 0.11%, at 5,117.95 and the Nasdaq Composite fell 65.84 points, or 0.41%, to 16,019.27.

“There are two ways stocks can get hit here – in the very, very near-term you can get an upside surprise to CPI and you get further inversion of the yield curve and that just kind of punts the eventual reckoning down the street a few blocks,” said Brian Nick, senior investment strategist at The Macro Institute in New York.

“But what we’re more concerned about is that there’s emerging weakness in a lot of the current activity.”

U.S. Treasury yields edged up ahead of the data, with the benchmark U.S. 10-year notes up 1 basis point at 4.098%, from 4.088% late on Friday. The 2-year note yield, which typically moves in step with interest rate expectations, rose 5 basis points to 4.536%.

The Fed is scheduled to release its next policy statement on March 20 and investors have all but ruled out a cut, with expectations at 97% the Fed will hold rates steady, according to CME’s FedWatch Tool.

Last week, comments from Fed Chair Jerome Powell and European Central Bank policymakers buoyed expectations that rate cuts will begin this summer. Expectations for a cut of at least 25 basis points (bps) at the June meeting are currently above 70%.

MSCI’s gauge of stocks across the globe fell 2.55 points, or 0.33%, to 768.75.

The STOXX 600 index closed down 0.35%, while Europe’s broad FTSEurofirst 300 index ended down 6.47 points, or 0.32%, weighed down by technology sector declines.

The dollar index gained 0.17% at 102.85, with the euro down 0.12% at $1.0924. Sterling weakened 0.37% at $1.281.

The Japanese yen strengthened 0.09% against the greenback at 146.94 per dollar. The yen had strengthened earlier in the day after Reuters reported a growing number of Bank of Japan policymakers are warming to the idea of ending negative interest rates this month.

In addition, data released on Monday showed Japan was not in recession after economic growth was revised up to an annualized 0.4% for the December quarter.

Crude prices were mixed, as U.S. crude settled down 0.1% at $77.93 a barrel and Brent settled at $82.21 per barrel, up 0.16% to on the day as concerns eased that fighting in the Middle East would disrupt supply and Chinese data suggested weak demand, while an increase in U.S. refining limited any selling.

In cryptocurrencies, bitcoin gained 5.37% at $72,090.50 after hitting a record $72,901.94.

Stocks dip from record highs with US inflation data on deck

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Related News