Stocks are likely to show a strong move to the upside in early trading on Wednesday following the choppy trading seen to start the week. The major index futures are currently pointing to a notably higher open for the markets, with the S&P 500 futures jumping by 0.9 percent.
The futures surged following the release of a highly anticipated Labor Department report showing a modest increase in U.S. consumer prices in the month of March.
The Labor Department said its consumer price index inched up by 0.1 percent in March after climbing by 0.4 percent in February. Economists had expected consumer prices to rise by 0.3 percent.
The report also showed the annual rate of consumer price growth slowed to 5.0 percent in March from 6.0 percent in February.
The year-over-year growth was slower than the 5.2 percent expected by economists and marks the smallest 12-month increase since May 2021.
The notable slowdown in the annual rate of growth may lead to optimism the Federal Reserve will hold off on raising interest rates again at its next meeting in early May.
Meanwhile, the report also said core consumer prices, which exclude food and energy prices, rose by 0.4 percent in March after advancing by 0.5 percent in February. The increase matched economist estimates.
The annual rate of growth by core consumer prices accelerated to 5.6 percent in March from 5.5 percent in February, which was also in line with expectations.
Later in the day, the Fed is due to release the minutes of its March monetary policy meeting, which may shed additional on the outlook for interest rates.
After ending Monday’s session little changed, the major U.S. stock indexes fluctuated over the course of the trading day on Tuesday before eventually closing mixed.
The major averages all came under pressure going into the close, although the Dow managed to end the day up 98.27 points or 0.3 percent at 33,684.79.
Meanwhile, the S&P 500 closed nearly flat, down just 0.17 points or less than a tenth of a percent at 4,108.94, while the tech-heavy Nasdaq fell 52.48 points or 0.4 percent to 12,031.88.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan’s Nikkei 225 Index climbed by 0.6 percent, while China’s Shanghai Composite Index rose by 0.4 percent.
The major European markets have also moved to the upside on the day. While the U.K.’s FTSE 100 Index has advanced by 0.6 percent, the French CAC 40 Index is up by 0.3 percent and the German DAX Index is up by 0.2 percent.
In commodities trading, crude oil futures are climbing $0.74 to $82.27 a barrel after surging $1.79 to $81.53 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,038.60, up $19.60 compared to the previous session’s close of $2,019. On Tuesday, gold climbed $15.20.
On the currency front, the U.S. dollar is trading at 132.85 yen compared to the 133.68 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0974 compared to yesterday’s $1.0912.
Business News
Futures Jump Following Tamer-Than-Expected Inflation Data
2023-04-12 12:51:26
