The S&P 500 fell 0.3% and the Dow Jones Industrial Average abandoned an overnight uptrend, hitting a 90-day low. The Nasdaq Composite fell after a previous rise, falling 0.3%. Meanwhile, bond yields fell slightly, but the 10-year benchmark yield remained above 2.7%, the highest level since January 2019. The moves follow a previous recovery of the shares, as some key elements in Tuesday’s reading of the Consumer Price Index (CPI) were less serious than expected, with the core approaching the consensus numbers. “While today’s inflation picture has reached a four-decade high, there has been a sigh of relief as some key inflation components weakened,” said Allianz Investment Management’s senior investment strategist Charlie Ripley. Investors focused on the latest US inflation index at Tuesday’s meeting. The Bureau of Labor Statistics (BLS) CPI rose 8.5% in March from the same month last year, according to the latest report released on Tuesday. This number marks the fastest rise since December 1981 and follows an annual increase of 7.9% in February. According to the report, consensus economists were looking for a jump of 8.4% for March, according to data from Bloomberg. “On peak inflation, we’ve been in this situation in the past where subtle changes in the data make it appear that inflation has peaked for the cycle just to keep going higher,” Ripley said. “In the future, the biggest concern is really about how consolidated inflation has become as Americans continue to worry about rising prices.” The hot print comes as investors face the possibility of Fed officials acting more aggressively to fight inflation after an aggressive minute reading last week of the central bank meeting in March, according to which “many” planners policy “they would prefer an increase of 50 basis points”. at reference rates last month. The story goes on “Investors are focusing laser on what the Federal Reserve is going to do in its forthcoming meetings, and increases of 50 basis points appear to be increasingly likely,” Commonwealth Financial Network chief investment manager Bill Price said in a response. in the printing of the CPI. . “The market seems to be anticipating increases by 50 basis points and several members of the Fed have expressed a desire to curb inflation.” While investors are largely prepared for the possibility that Fed policymakers may be more militant in their fight against inflation, concerns have been raised that a rise in monetary tightening could lead to a contraction. The generals have been discussing the possibility of a recession more widely in recent weeks, especially with Deutsche Bank economists who recently warned that central bank measures could substantially slow growth in the second half of 2023. Some said it was too early for such a call, but that the possibility is on the table. “I would say it is probably closer to a currency drop that the economy will move into recession by the end of the year,” Dreyfus and Mellon Chief economist and macro-general Vince Reinhart told Yahoo Finance Live. –
4:00 p.m. ET: Shares are closing lower after a turnover compared to previous discounts
See how the main indicators went at the end of Tuesday’s session:
S&P 500 (^ GSPC): -15.18 (-0.34%) to 4,397.35 Dow (^ DJI): -88.19 (-0.26%) at 34,219.89 Nasdaq (^ IXIC): -40.38 (-0.30%) at 13,371.57 Crude (CL = F): + $ 6.23 (+ 6.61%) at $ 100.52 per barrel Gold (GC = F): +23.90 $ (+ 1.23%) at $ 1.972.10 per ounce 10-year Treasury (^ TNX): -5.5 bps for a yield of 2.7250%
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12:39 p.m. ET: JPMorgan shares are down almost 16% year-on-year
JPMorgan is the first mega-bank to reveal the results of the first quarter on Wednesday, as it starts the profit season. Analysts estimate the company will report earnings per share (EPS) of $ 2.72, according to Bloomberg Consensus estimates. Financial indicators have lagged significantly in the wider market year after year amid concerns about US banks’ ties to Russia and concerns about a slowdown. In a recent annual letter to shareholders, JPMorgan CEO Jamie Dimon warned that the bank could lose up to $ 1 billion over time as a result of the war. Although the big bank has said it is not worried about its immediate exposure to Russia, the institution is concerned about the “side effects” of the crisis and sanctions on so many companies and countries. Shares of JPMorgan fell slightly in mid-day trading by 0.3% to $ 132.64 a share at 12:37 p.m. ET. The share is down 15.8% on an annual basis. –
12:18 p.m. ET: Lululemon goes up after the expansion of the exchange and resale program
Shares of Lululemon sportswear retailer (LULU) rose up to 6% to a three-day high since Jan. 3 following the announcement that the company would expand its “Lululemon Like New” trading and resale program nationwide. Lululemon Like New will be available to customers across the US starting on Earth Day, April 22 after a successful two-state pilot in 2021. The retailer will reinvest 100% of its profits to support its Impact Agenda, including the creation of 100% of products with sustainable materials and end-use solutions by 2030. LULU rose 4.4% to $ 384.80 per share at 12:14 p.m. ET, probably reinforced by an update on the wider markets as the CPI data was less serious than expected, with the core just below the consensus figures. The S&P 1500 Consumer Discretionary Index rose up 2.4%. –
9:30 a.m. ET: Shares are moving forward despite the report showing warm inflation in March
Here are the main moves in the markets during Tuesday’s opening bell:
S&P 500 (^ GSPC): +28.07 (+ 0.64%) at 4,440.60 Dow (^ DJI): +100.67 (+ 0.29%) at 34,408.75 Nasdaq (^ IXIC): +162.91 (+ 1.21%) at 13,574.87 Crude (CL = F): + $ 4.36 (+ 4.62%) at $ 98.65 per barrel Gold (GC = F): +25.20 $ (+ 1.29%) at $ 1.973.40 per ounce 10-year Treasury (^ TNX): -6.1 bps for a yield of 2.7190%
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8:35 a.m. ET: CPI in March increased more than expected 8.5% compared to last year
Consumers in the US paid more for a variety of goods and services in March than in the previous month, as price levels across the economy continued to accelerate amid continuing supply and demand disruptions. The Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) rose 8.5% in March from the same month last year, according to the latest report released on Tuesday. This marked the fastest rise since December 1981. This followed an annual increase of 7.9% in February. According to the report, consensus economists were looking for a jump of 8.4% for March, according to data from Bloomberg. With definitive signs that inflation has not yet seen a peak, members of the Federal Reserve have escalated their rhetoric about using monetary policy tools to reduce rapidly rising prices. Last week, Fed Governor Lael Brainard said reducing inflation was “our most important task,” while San Francisco Fed Chairman Mary Daly said high inflation was “just as harmful as not having work”. –
7:10 a.m. ET: S&P 500, Dow and Nasdaq contracts as investors await PPC printing
See how the main indicators went in futures trading ahead of Tuesday’s campaign:
S&P 500 Futures (ES = F): +1.25 points (+ 0.03%) at 4,410.25 Dow futures (YM = F): -1.00 points (-0.00%) at 34,218.00 Nasdaq Futures (NQ = F): +14.25 points (+ 0.10%) at 14,014.25 Crude (CL = F): + $ 3.81 (+ 4.04%) at $ 98.10 per barrel Gold (GC = F): + $ 10.30 (+ 0.53%) to $ 1,958.50 per ounce 10-year Ministry of Finance (^ TNX): +0.00 bps for a yield of 2.7800%
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6:40 a.m. ET: Small business climate in US shrinks as inflation concerns rise
Confidence levels among small business owners across the country fell further in March, with a growing number of mothers and pop-shop operators citing inflation as their single most important concern, according to a survey Tuesday. The National Federation of Independent Businesses said the Small Business Optimism Index fell 2.4 points to 93.2 last month to mark the third consecutive month of measurements below the 48-year average of 98. The index fell each month this year until moment. Of those polled, 31% identified inflation as their single most important problem, up 5 points from the February survey. That number is the largest share of respondents who cite inflation as their biggest concern since the first quarter of 1981, also replacing “quality of work” concerns as the number one problem facing small businesses. High inflation caused by shortages, huge fiscal stimulus and low interest rates have pushed the economy in recent months. –
6:10 p.m. ET Monday: Slight change in futures ahead of Tuesday’s inflation data
This is where the markets traded in anticipation of Monday’s overnight meeting:
S&P 500 Futures (ES = F): +2.75 points (+ 0.06%) at 4,411.75 Dow futures (YM = F): +29.00 points (+ 0.08%) at 34,248.00 Nasdaq Futures (NQ = F): +9.75 points (+ 0.07%) at 14,009.75 Crude (CL = F): + $ 0.97 (+ 1.03%) at $ 95.26 per barrel Gold (GC = F): + $ 9.30 (+ 0.48%) at $ 1,957.50 per ounce 10-year Treasury (^ TNX): +6.7 bps for 2.7800% yield
A trader works on the New York Stock Exchange (NYSE) in Manhattan, New York, USA, April 11, 2022. REUTERS / Andrew Kelly – Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard and LinkedIn
