Major U.S. stock indexes rose on Wednesday (12th) after U.S. consumer price index (CPI) data for March showed that inflation cooled faster than market expectations, fueling investors’ hopes that the Federal Reserve (Fed) may soon pause its interest rate hike cycle. ) open high.
before the deadline,Dow Jones Industrial Averagerose 180 points or nearly 0.5%,Nasdaq Composite Indexup nearly 50 points or 0.4%,S&P 500 Indexup nearly 0.4%,Philadelphia SemiconductorThe index fell nearly 0.3 percent.
The U.S. CPI report released on Wednesday showed a slowdown in inflation, spurring major U.S. stock index futures to rise sharply before the market. At the same time, the two-year U.S. Treasury yield fell by more than 10 basis points and the dollar’s decline deepened. Exchange contract transactions show that the probability of the Fed raising interest rates in May has dropped to slightly more than two-thirds, and the Fed’s benchmark interest rate is expected to be 2 yards (50 basis points) lower than the current one by the end of the year.
According to data released by the US Department of Labor, the CPI increased by 5% in March, which was lower than market expectations of 5.2% and the previous value of 6%, the lowest since May 2021; the core CPI, which excludes food and energy costs, increased by 5.6% in line with market expectations , but slightly higher than the previous value of 5.5%.
On a monthly basis, March CPI grew by 0.1%, lower than market expectations of 0.2%, and a sharp drop from the previous value of 0.4%. Core CPI grew by 0.4%, in line with market expectations, but slightly lower than the previous value of 0.5%.
It’s a delicate balancing act for Fed officials, who need to stem smoldering inflation while stabilizing a faltering banking sector.
Signals from Fed officials themselves have also been mixed. Chicago Fed President Austan Goolsbee said yesterday the central bank should be “cautious and conscientious,” while New York Fed President John Williams said officials have more work to do to tackle inflation Do.
As of 21:00 on Wednesday (12th) Taipei time:
Focus stocks:
Tesla (TSLA-US) rose 1.37 percent to $189.35 a share in early trade
Tesla Hong Kong said that through the “one-for-one” plan, it will reduce the price of Model 3 and Model Y from this Saturday (15th), with an increase of up to 14%. The report pointed out that the biggest price cut this time is Model 3 Performance, with a “one-for-one” price starting at HK$440,355, a decrease of 14.7%; followed by a price reduction of Model 3 Long Range by 11.06% to approximately HK$399,000. As for the Long Range and Performance of Model Y, the declines were 8.7% and 9.03%, respectively.
apple (AAPL-US) rose 0.54 percent to $161.66 a share in early trade
Haitong International Securities analyst Jeff Pu and Tianfeng International Guo Minghao both revealed that the iPhone 15 Pro series will eventually cancel the solid-state volume button design that the market has paid close attention to, and maintain the traditional and classic physical iPhone volume button. However, some media quoted people familiar with the matter as reporting that the solid-state buttons should just not be used in this generation, and the possibility of delay is high.
ford (F-US) rose 0.85 percent to $12.98 a share in early trade
Ford said a few days ago that it plans to invest 1.8 billionCanadian Dollars(approximately $1.34 billion), revamping its assembly plant in Oakville, Canada, to speed up production of electric vehicles and help meet its goal of producing 2 million electric vehicles a year by 2026. According to the plan, Ford will build a 407,000-square-foot battery farm in Oakville. In addition, the converted factory will start producing electric vehicles in 2025.
Today’s key economic data:
- U.S. March CPI annual growth rate reported 5.0%, expected 5.2%, previous value 6.0%
- U.S. March CPI monthly growth rate reported 0.1%, expected 0.2%, previous value 0.4%
- U.S. core CPI annual growth rate in March reported 5.6%, expected 5.6%, previous value 5.5%
- The monthly growth rate of the core CPI in the United States in March was reported at 0.4%, expected 0.4%, and the previous value was 0.5%
- The monthly growth rate of real personal income in the United States in March was -0.1%, expected -0.2%, and the previous value was -0.4%
Wall Street Analysis:
Russ Mould, director of investment at AJ Bell, said the market recently believed that the Fed needed to ensure the stability of the financial system. That means a slowdown in the pace of rate hikes, which could lead to an economic collapse. However, the reason interest rates have risen so quickly over the past 12 months is that inflation has continued to climb, so today’s inflation report is quite important for the Fed.
Chris Harvey, head of equity strategy at ZF Bank, said that this year’s rebound in US stocks is short-lived, and the deteriorating economic situation may lead to a decline in the market in the next few months.In addition, Harvey estimatesS&P 500 IndexIt will retrace about 10% in the next 3 to 6 months, falling to the low of 3,700 in November last year. However, Wells Fargo’s current year-end target of 4,200 remains unchanged.