Inflation data Financial News

(Reuters) — U.S. stock index futures edged higher on Friday, a day after the benchmark S&P 500 breached the 5,000-mark for the first time, while investors looked ahead to inflation data for hints on the timing of the Federal Reserve's first interest-rate cut.

Volume faded in the afternoon ahead of the weekend and as investors braced next week for a slew of important U.S. economic data such as non-farm payrolls for January and key events led by the Federal Open Market Committee meeting and the Treasury's refunding announcement.

The Bitcoin (BTC) price is enjoying an end-of-week relief rally in wake of economic data that showed inflationary pressures in the US continued to subside to more acceptable levels in December 2023.

inflation print signaling continued moderation in price pressures helped offset an earnings gloom cast by a dour revenue forecast from Intel. The U.S. Commerce Department's report showed the personal consumption expenditure index — the Federal Reserve's preferred inflation gauge -rose moderately in December , keeping the annual increase in inflation below 3% for a third-straight month that could allow the central bank to start interest rate cuts this year. «Today's report, is clearly market friendly even if it doesn't suggest, at this point, that the Fed lowers rates at the March 20 meeting,» said Quincy Krosby, chief global strategist at LPL Financial. «Unless next month's collection of inflation-related data underscores decisively that the path towards to 2% is squarely in sight, the Fed will most likely wait until May or June to begin easing rates.» Weighing on the tech-focused Nasdaq, Intel slumped 12.1% to a six-week low after forecasting that its first-quarter revenue could miss estimates by over $2 billion, driving losses between 1.6% and 2.2% in other chip stocks including Advanced Micro Devices, Qualcomm and Micron Technology. The Philadelphia SE Semiconductor index slipped 2.4%, while the S&P 500 technology sector was the only one in the red with a 0.7% loss. This, along with Tesla's growth warning on Wednesday, likely deepened worries over rich valuations of heavily weighted megacap companies.

By Ankika Biswas and Johann M Cherian

investors reduced their holdings in equity funds in the week leading up to Jan. 24, exercising caution before a pivotal inflation report due on Friday and a meeting of the U.S.

Investing.com — The U.S. dollar steadied at a one-month high amid increasing doubts over early interest rate cuts by the Federal Reserve, while sterling climbed on hot inflation data.

bank earnings offset cooler-than-expected inflation news that buoyed hopes for interest-rate cuts from the Federal Reserve. On Friday, data showed U.S. producer prices unexpectedly fell in December as the cost of goods such as food and diesel fuel declined, while prices for services were unchanged for a third consecutive month, in contrast to Thursday's hotter-than-expected consumer inflation reading. Expectations for a rate cut of at least 25 basis points by the Fed in March moved up to 79.5%, according to CME's FedWatch Tool, from 73.2% in the prior session.

(Reuters) -U.S. stock index futures declined on Friday as weak earnings reports from big banks sparked worries about the health of corporate America, while investors awaited an inflation report during the day for clues on monetary policy outlook.

Emkay Global Financial Services expects December CPI to come at 5.88 per cent while core inflation, which excludes volatile items like food and fuel prices, may ease to 3.9 per cent. Sujan Hajra, Chief Economist at Anand Rathi Shares & Stock Brokers expects CPI inflation to notch up to 5.72 per cent in December 2023. Global financial firm Barclays estimates that CPI inflation rose modestly in December to 5.6 per cent year-on-year (YoY), driven higher mostly by unfavourable base effects.

The December Consumer Price Index (CPI) report came in stronger than expected on Thursday, with inflation coming in above economists' expectations, prompting some doubts regarding the Federal Reserve's potential rate cuts.

By Johann M Cherian and Ankika Biswas

rupee ended little changed against the dollar on Thursday, ahead of the key U.S. inflation data that could potentially help investors reassess the outlook for interest rates in the world's largest economy. The rupee was at 83.0275 to the dollar compared with 83.0250 in the previous session. The rupee had, in intraday trades, risen to a near one-month high of 82.9350 on dollar sales by certain foreign banks pertaining to custodial and positional flows, traders said. «Despite the dollar inflows, the rupee needs to close convincingly above 83 to confirm a change in trend,» said Jigar Trivedi, senior research analyst — currencies and commodities at Reliance Securities. The role of the Reserve Bank of India (RBI) will be important in terms of how these flows are managed, Trivedi added. U.S.

India inflation likely crept closer to 6% in December: Mint poll Experts do not appear concerned about the mild spike in inflation as they note that core inflation, which excludes volatile items like food and fuel, may have moderated last month. Sujan Hajra, Chief Economist at Anand Rathi Shares & Stock Brokers expects CPI inflation to notch up to 5.72 per cent in December 2023.

Gold prices edged higher on Thursday, supported by a softer dollar ahead of a consumer inflation report due later in the day that could shed some light on the U.S. Federal Reserve's interest rate trajectory.

inflation reports and major bank earnings later in the week. Microsoft, Meta Platforms and Nvidia were the biggest boosts to the S&P 500 index, as the benchmark 10-year Treasury note yield held near 4%and a $37 billion auction of the notes drew above-average demand. Communication services was the best performing of the 11 major S&P sectors, lifted by a 3.65% rise in Meta Platforms' stock, which hit its highest intraday level since September 2021, after Mizuho raised its price target to $470 from $400. Nvidia hit a record high and closed up 2.28% after fellow chipmaker TSMC beat fourth-quarter revenue expectations. After ending 2023 with a strong rally, stocks have struggled to find upward momentum, with the S&P 500 barely positive on the year, as mixed economic data and comments from Federal Reserve officials have led investors to dial back expectations for the timing and size of any rate cuts from the central bank this year. But Wednesday's gains left the index just 0.27% away from its record close of 4,796.56 set on Jan.

Investing.com-- Gold prices moved little in Asian trade on Wednesday, retaining most of their losses from the prior week as investors questioned bets on early interest rate cuts by the Federal Reserve.

₹62,209 per 10 grams. Silver prices also gained 0.08% to trade at 72,105 per kg. International gold prices held steady as investors refused to make big bets awaiting US inflation print that could offer more clarity on when the US Federal Reserve might begin cutting interest rates, Reuters reported.

By Ankur Banerjee

By Johann M Cherian and Ankika Biswas

Investing.com-- Gold prices rose slightly in Asian trade on Tuesday, recovering from a rough start to the year as markets reassessed expectations for early interest rate cuts by the Federal Reserve before key U.S. inflation data due this week.