2023-04-14 09:26:53
Daily Market Update – Friday, April 14, 2023
The U.S. producer price index for final demand dropped 0.5% in March, the most since April 2020, after being unchanged in February.
Stock markets rallied, and bond yields were steady overnight as a result of moderating U.S. producer prices and a jump in weekly jobless claims bolstering bets that the Federal Reserve may soon pause its hiking of interest rates to tame high inflation.
U.S. stocks ended sharply higher on optimism the Fed could be nearing the end of its aggressive rate hiking cycle, with the Dow Jones Industrial Average rising 1.14%, the S&P 500 gaining 1.33% and the Nasdaq Composite adding 1.99%.
Futures priced in a 71.1% chance the Fed raises its lending rate by 25 basis points when policymakers conclude a two-day meeting on May 3, up from 61% soon after the data was released.
Gold hit a 13-month high, and the dollar weakened after the data reduced expectations that the Fed will raise rates in May.
Crude oil prices edged lower after scaling multi-month high levels in the previous session, weighed by fears of a looming U.S. recession and warnings from the Organization of the Petroleum Exporting Countries about hits to summer oil demand.
Earnings reports for Wall Street begin, with Citigroup Inc, Wells Fargo and JPMorgan Chase & Co due to report.
#DanielAng #ProducerPrices #FederalReserve #Gold #StockMarket #CrudeOil
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