Breaking News On Crucial Inflation Data

(MENAFN- Baystreet) Best Buy Rockets on Earnings Beat

  • Snowflake Falls as CEO Packs it in
  • Pfizer Noses Up on New Treatment
  • Birkenstock Drops on Figures
  • Apple Reportedly Axes Electric Vehicle Program Previous Articles Subscribe to Get Small Cap News & Alerts Chris La - Thursday, February 29, 2024

    Breaking News on Crucial Inflation Data

    The crucial inflation report this morning will have the most influence on stocks today and the month ahead. It guides the Federal Reserve's interest rate-cutting policy.
    Markets rode an overly optimistic scenario that assumed six interest rate cuts. Despite no rate cut in March and an improbable one in June, the S&P 500 (SPY), Dow Jones, and Nasdaq (QQQ) did not fall by much. The core PCE inflation reading will define the Fed's pace of rate cuts.

    Stock markets will read the PCE data closely while ordinary people outside of investing will not care too much. They are already experiencing significant inflation in food, auto and home insurance, and shelter.

    The Fed will not likely justify a rate cut if inflation falls close to 2%. It would weaken its ability to fight a recession. Chances are good that the Fed will keep interest rates above 5.0%. This will give its monetary policy more time to slow cost pressures, especially shelter.

    Stock markets are simply not prepared for the Fed holding rates for some time to come. Investors should continue selling REITs since interest on cash-equivalent holdings is above 5%. So, expect continued weakness in REITs like W.P. Carey (WPC), Crown Castle (CCI), Reality Income (O), and American Tower (AMT).

    • About Us
    • Contact Us
    • Advertise
    • License Our Content
    • Jobs
    • Disclaimer
    • Privacy Policy

    Copyright 1998 - 2024 Baystreet Media Corp. All rights reserved. Nasdaq Stocks: Information delayed 15 minutes. Non-Nasdaq Stocks: Information delayed 20 minutes. Bid and Ask quotation information for NYSE and AMEX securities is only available on a real time basis. Market Data is provided by QuoteMedia. Earnings by Zacks. Analyst Ratings by Zacks


  • Legal Disclaimer:
    MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.