Hot Inflation Print Ends 5-Week Win Streak
- US shares slipped decrease on Friday after a sizzling inflation print capped off every week of key knowledge factors.
- The S&P 500 dipped 0.27% over the previous 5 days, ending a 5-week win streak.
- “Certainly, [the PPI data] has aligned the Fed’s projected price path with the market’s, as traders at the moment are pricing in simply three cuts this yr.”
The inventory market slipped on Friday after sizzling inflation capped off a busy week of financial knowledge prints.
The Producer Worth Index got here in larger than anticipated, displaying a 0.3% enhance in costs from December, with a year-over-year enhance of 0.9%. That is after sizzling CPI knowledge rolled in earlier this week.
Despite the fact that the market recovered from Tuesday’s hiccup, investor gloom has knocked shares off a 5-week win streak. The S&P 500 is down 0.27% prior to now 5 days, whereas the Nasdaq is down 1.02%.
This week additionally noticed retail gross sales knowledge slide decrease, down 0.8% from a month earlier in January.
These knowledge factors spotlight a sturdy economic system, however imply a Fed price minimize is farther out than markets had been hoping. On Thursday, Atlanta Fed president Raphael Bostic mentioned he is not satisfied that inflation is certainly headed towards the central financial institution’s 2% goal.
After the PPI knowledge got here out, odds that the Fed would maintain charges the place they’re throughout their Could assembly jumped one other 10%, in keeping with the CME FedWatch Software.
“Certainly, this [inflation] report has aligned the Fed’s projected price path with the market’s, as traders at the moment are pricing in simply three cuts this yr; earlier this yr, they’d anticipated seven,” mentioned José Torres, Senior Economist at Interactive Brokers. “The sharp adjustment in expectations has but to have an effect on equities in a significant means, nonetheless, with bullish sentiment and better-than-expected earnings reviews offering sturdy assist.”
Here is the place US indexes stood on the closing bell at 4:00 p.m. on Friday:
Here is what else is occurring:
In commodities, bonds, and crypto: