No Result
View All Result
No Result
View All Result
No Result
View All Result
\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

U.S. stocks ended sharply higher on Tuesday after the Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Year-on-year, headline and core CPI came in at 3.2% and 3.8%, respectively and it is important to say that both readings were only 10 basis points hotter than some analysts expected.<\/p>\n\n\n\n

\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The Nasdaq Composite rose 1% to 18,608.2 intraday, while the S&P 500 gained 0.7% to reach 5,614.8. The Dow Jones Industrial Average advanced 0.5%, climbing to 39,479.8 while it is important to mention that the technology and materials sectors led the gains, with financials being the only sector to decline. Following the progress of Wall Street's main indexes seen in the first half of the year, investors are still optimistic about the prospect of another robust period ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession.<\/p>\n","post_title":"Wall Street's Main Indexes Advanced After Fed Chair Powell's Remarks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-advanced-after-fed-chair-powells-remarks","to_ping":"","pinged":"","post_modified":"2024-07-15 03:48:49","post_modified_gmt":"2024-07-14 17:48:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17776","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15865,"post_author":"14","post_date":"2024-03-14 08:04:56","post_date_gmt":"2024-03-13 21:04:56","post_content":"\n

U.S. stocks ended sharply higher on Tuesday after the Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Year-on-year, headline and core CPI came in at 3.2% and 3.8%, respectively and it is important to say that both readings were only 10 basis points hotter than some analysts expected.<\/p>\n\n\n\n

\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Federal Reserve Chair Jerome Powell also said this Wednesday that the central bank is not just focused on inflation and that policymakers closely watch the situation in the U.S. labor market. He concluded that the U.S. is still on track for a so-called soft landing, where the Fed's inflation target is met without a significant increase in the unemployment rate. This outcome seemed improbable when inflation reached a 40-year high in 2022.<\/p>\n\n\n\n

The Nasdaq Composite rose 1% to 18,608.2 intraday, while the S&P 500 gained 0.7% to reach 5,614.8. The Dow Jones Industrial Average advanced 0.5%, climbing to 39,479.8 while it is important to mention that the technology and materials sectors led the gains, with financials being the only sector to decline. Following the progress of Wall Street's main indexes seen in the first half of the year, investors are still optimistic about the prospect of another robust period ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession.<\/p>\n","post_title":"Wall Street's Main Indexes Advanced After Fed Chair Powell's Remarks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-advanced-after-fed-chair-powells-remarks","to_ping":"","pinged":"","post_modified":"2024-07-15 03:48:49","post_modified_gmt":"2024-07-14 17:48:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17776","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15865,"post_author":"14","post_date":"2024-03-14 08:04:56","post_date_gmt":"2024-03-13 21:04:56","post_content":"\n

U.S. stocks ended sharply higher on Tuesday after the Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Year-on-year, headline and core CPI came in at 3.2% and 3.8%, respectively and it is important to say that both readings were only 10 basis points hotter than some analysts expected.<\/p>\n\n\n\n

\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Central Bank And Inflation<\/h2>\n\n\n\n

Federal Reserve Chair Jerome Powell also said this Wednesday that the central bank is not just focused on inflation and that policymakers closely watch the situation in the U.S. labor market. He concluded that the U.S. is still on track for a so-called soft landing, where the Fed's inflation target is met without a significant increase in the unemployment rate. This outcome seemed improbable when inflation reached a 40-year high in 2022.<\/p>\n\n\n\n

The Nasdaq Composite rose 1% to 18,608.2 intraday, while the S&P 500 gained 0.7% to reach 5,614.8. The Dow Jones Industrial Average advanced 0.5%, climbing to 39,479.8 while it is important to mention that the technology and materials sectors led the gains, with financials being the only sector to decline. Following the progress of Wall Street's main indexes seen in the first half of the year, investors are still optimistic about the prospect of another robust period ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession.<\/p>\n","post_title":"Wall Street's Main Indexes Advanced After Fed Chair Powell's Remarks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-advanced-after-fed-chair-powells-remarks","to_ping":"","pinged":"","post_modified":"2024-07-15 03:48:49","post_modified_gmt":"2024-07-14 17:48:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17776","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15865,"post_author":"14","post_date":"2024-03-14 08:04:56","post_date_gmt":"2024-03-13 21:04:56","post_content":"\n

U.S. stocks ended sharply higher on Tuesday after the Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Year-on-year, headline and core CPI came in at 3.2% and 3.8%, respectively and it is important to say that both readings were only 10 basis points hotter than some analysts expected.<\/p>\n\n\n\n

\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related:<\/em><\/strong> U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Federal Reserve Chair Jerome Powell also said this Wednesday that the central bank is not just focused on inflation and that policymakers closely watch the situation in the U.S. labor market. He concluded that the U.S. is still on track for a so-called soft landing, where the Fed's inflation target is met without a significant increase in the unemployment rate. This outcome seemed improbable when inflation reached a 40-year high in 2022.<\/p>\n\n\n\n

The Nasdaq Composite rose 1% to 18,608.2 intraday, while the S&P 500 gained 0.7% to reach 5,614.8. The Dow Jones Industrial Average advanced 0.5%, climbing to 39,479.8 while it is important to mention that the technology and materials sectors led the gains, with financials being the only sector to decline. Following the progress of Wall Street's main indexes seen in the first half of the year, investors are still optimistic about the prospect of another robust period ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession.<\/p>\n","post_title":"Wall Street's Main Indexes Advanced After Fed Chair Powell's Remarks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-advanced-after-fed-chair-powells-remarks","to_ping":"","pinged":"","post_modified":"2024-07-15 03:48:49","post_modified_gmt":"2024-07-14 17:48:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17776","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15865,"post_author":"14","post_date":"2024-03-14 08:04:56","post_date_gmt":"2024-03-13 21:04:56","post_content":"\n

U.S. stocks ended sharply higher on Tuesday after the Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Year-on-year, headline and core CPI came in at 3.2% and 3.8%, respectively and it is important to say that both readings were only 10 basis points hotter than some analysts expected.<\/p>\n\n\n\n

\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"There's still three CPI reports that we're slated to get between now and September, so it's hard to say conclusively that he's leaning towards September or if it's going to be pushed off. My expectation for CPI is that it will continue to see the easing trend with respect to inflation. But I don't think the decline we're going to see for June is going to be as strong as what we saw in May.\"<\/em><\/p>\n\n\n\n

See Related:<\/em><\/strong> U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Federal Reserve Chair Jerome Powell also said this Wednesday that the central bank is not just focused on inflation and that policymakers closely watch the situation in the U.S. labor market. He concluded that the U.S. is still on track for a so-called soft landing, where the Fed's inflation target is met without a significant increase in the unemployment rate. This outcome seemed improbable when inflation reached a 40-year high in 2022.<\/p>\n\n\n\n

The Nasdaq Composite rose 1% to 18,608.2 intraday, while the S&P 500 gained 0.7% to reach 5,614.8. The Dow Jones Industrial Average advanced 0.5%, climbing to 39,479.8 while it is important to mention that the technology and materials sectors led the gains, with financials being the only sector to decline. Following the progress of Wall Street's main indexes seen in the first half of the year, investors are still optimistic about the prospect of another robust period ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession.<\/p>\n","post_title":"Wall Street's Main Indexes Advanced After Fed Chair Powell's Remarks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-advanced-after-fed-chair-powells-remarks","to_ping":"","pinged":"","post_modified":"2024-07-15 03:48:49","post_modified_gmt":"2024-07-14 17:48:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17776","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15865,"post_author":"14","post_date":"2024-03-14 08:04:56","post_date_gmt":"2024-03-13 21:04:56","post_content":"\n

U.S. stocks ended sharply higher on Tuesday after the Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Year-on-year, headline and core CPI came in at 3.2% and 3.8%, respectively and it is important to say that both readings were only 10 basis points hotter than some analysts expected.<\/p>\n\n\n\n

\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The Consumer Price Index (CPI) data will be released on July 11 and if the inflation figures are lower than expected, it could signal an immediate interest rate cut or suggest that the Federal Reserve will implement additional rate cuts in the near future. Market bets on a 25-basis-point rate cut from the Fed in September were at 74%, up from around 70% on Tuesday and 45% a month ago, according to CME's FedWatch. Raymond James Chief Market Strategist Matthew Orton said<\/a> in an interview with Reuters:<\/p>\n\n\n\n

\"There's still three CPI reports that we're slated to get between now and September, so it's hard to say conclusively that he's leaning towards September or if it's going to be pushed off. My expectation for CPI is that it will continue to see the easing trend with respect to inflation. But I don't think the decline we're going to see for June is going to be as strong as what we saw in May.\"<\/em><\/p>\n\n\n\n

See Related:<\/em><\/strong> U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Federal Reserve Chair Jerome Powell also said this Wednesday that the central bank is not just focused on inflation and that policymakers closely watch the situation in the U.S. labor market. He concluded that the U.S. is still on track for a so-called soft landing, where the Fed's inflation target is met without a significant increase in the unemployment rate. This outcome seemed improbable when inflation reached a 40-year high in 2022.<\/p>\n\n\n\n

The Nasdaq Composite rose 1% to 18,608.2 intraday, while the S&P 500 gained 0.7% to reach 5,614.8. The Dow Jones Industrial Average advanced 0.5%, climbing to 39,479.8 while it is important to mention that the technology and materials sectors led the gains, with financials being the only sector to decline. Following the progress of Wall Street's main indexes seen in the first half of the year, investors are still optimistic about the prospect of another robust period ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession.<\/p>\n","post_title":"Wall Street's Main Indexes Advanced After Fed Chair Powell's Remarks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-advanced-after-fed-chair-powells-remarks","to_ping":"","pinged":"","post_modified":"2024-07-15 03:48:49","post_modified_gmt":"2024-07-14 17:48:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17776","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15865,"post_author":"14","post_date":"2024-03-14 08:04:56","post_date_gmt":"2024-03-13 21:04:56","post_content":"\n

U.S. stocks ended sharply higher on Tuesday after the Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Year-on-year, headline and core CPI came in at 3.2% and 3.8%, respectively and it is important to say that both readings were only 10 basis points hotter than some analysts expected.<\/p>\n\n\n\n

\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Wall Street's main indexes advanced this Wednesday after Federal Reserve Chair Jerome Powell said that inflationary pressures were likely easing. Federal Reserve Chair Jerome Powell reiterated remarks submitted to the Senate Banking Committee Tuesday, that recent inflation data have shown \"modest further progress,\" and that \"more good data\" would strengthen policymakers' confidence that inflation was returning to their 2% target.<\/p>\n\n\n\n

The Consumer Price Index (CPI) data will be released on July 11 and if the inflation figures are lower than expected, it could signal an immediate interest rate cut or suggest that the Federal Reserve will implement additional rate cuts in the near future. Market bets on a 25-basis-point rate cut from the Fed in September were at 74%, up from around 70% on Tuesday and 45% a month ago, according to CME's FedWatch. Raymond James Chief Market Strategist Matthew Orton said<\/a> in an interview with Reuters:<\/p>\n\n\n\n

\"There's still three CPI reports that we're slated to get between now and September, so it's hard to say conclusively that he's leaning towards September or if it's going to be pushed off. My expectation for CPI is that it will continue to see the easing trend with respect to inflation. But I don't think the decline we're going to see for June is going to be as strong as what we saw in May.\"<\/em><\/p>\n\n\n\n

See Related:<\/em><\/strong> U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?<\/a><\/p>\n\n\n\n

Central Bank And Inflation<\/h2>\n\n\n\n

Federal Reserve Chair Jerome Powell also said this Wednesday that the central bank is not just focused on inflation and that policymakers closely watch the situation in the U.S. labor market. He concluded that the U.S. is still on track for a so-called soft landing, where the Fed's inflation target is met without a significant increase in the unemployment rate. This outcome seemed improbable when inflation reached a 40-year high in 2022.<\/p>\n\n\n\n

The Nasdaq Composite rose 1% to 18,608.2 intraday, while the S&P 500 gained 0.7% to reach 5,614.8. The Dow Jones Industrial Average advanced 0.5%, climbing to 39,479.8 while it is important to mention that the technology and materials sectors led the gains, with financials being the only sector to decline. Following the progress of Wall Street's main indexes seen in the first half of the year, investors are still optimistic about the prospect of another robust period ahead. This optimism is rooted in the anticipation that a decelerating economy will result in a gentle landing rather than a full-scale recession.<\/p>\n","post_title":"Wall Street's Main Indexes Advanced After Fed Chair Powell's Remarks","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"wall-streets-main-indexes-advanced-after-fed-chair-powells-remarks","to_ping":"","pinged":"","post_modified":"2024-07-15 03:48:49","post_modified_gmt":"2024-07-14 17:48:49","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17776","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15865,"post_author":"14","post_date":"2024-03-14 08:04:56","post_date_gmt":"2024-03-13 21:04:56","post_content":"\n

U.S. stocks ended sharply higher on Tuesday after the Labor Department reported that the Consumer Price Index (CPI) rose 0.4% last month after climbing 0.3% in January. Year-on-year, headline and core CPI came in at 3.2% and 3.8%, respectively and it is important to say that both readings were only 10 basis points hotter than some analysts expected.<\/p>\n\n\n\n

\"Consumer<\/figure>\n\n\n\n

Looking at individual categories, energy prices surged by 2.3%, gasoline jumped by 3.8%, and airfares increased by 3.6%, catching attention. However, there are positive notes as services and shelter, previously seen as barriers to a sustained cool-down, decreased to 0.5% and 0.4%, respectively.<\/p>\n\n\n\n

Although we observe a continuing downward trend in inflation, the gradual advancement witnessed over recent months is expected to prompt the Fed to seek further assurance that inflation is steadily returning to its 2% target.<\/p>\n\n\n\n

Expectations in the market regarding the timing of the Fed's initial rate cut mostly stayed the same and the CME's FedWatch Tool reported that there is a 66.2% probability of a cut of at least 25 basis points in June, a slight decrease from 71.7% in the previous session.<\/p>\n\n\n\n

Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut said that the US economy continues to be healthy and from his perspective as a consumer, employee, and investor, he would rather have a strong economy and slightly elevated interest rates than a weak economy that requires stimulus.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Wall Street's Main Indexes Tumbled As Hot Inflation Data Dampened Early Rate-Cut Hopes<\/a><\/p>\n\n\n\n

S&P 500 Advanced To Record High<\/h2>\n\n\n\n

The S&P 500 advanced to a record high supported by the optimism and ended at 5,175.06 points, the Nasdaq Composite gained 1.53% at 16,264.08, while the Dow Jones Industrial Average rose 230.43 points, or 0.59%, to 39,000.09. Bill Dunkelberg, NFIB's chief economist, said<\/a>:<\/p>\n\n\n\n

\"While inflation pressures have eased since peaking in 2021, small business owners are still managing the elevated costs of higher prices and interest rates, The labor market has also eased slightly as small business owners are having an easier time attracting and retaining employees.\"<\/em><\/p>\n\n\n\n

However, some economic analysts said that the central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the months ahead.<\/p>\n","post_title":"U.S. Stocks Ended Sharply Higher After CPI Data Met Expectations","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-stocks-ended-sharply-higher-after-cpi-data-met-expectations","to_ping":"","pinged":"","post_modified":"2024-03-14 08:05:04","post_modified_gmt":"2024-03-13 21:05:04","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15865","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT

CPI

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.