S&P 500 saw a 1.17% jump, closing at a record 5,308.15 points. This was the first time that the index surpassed the 5,300 mark.

The Dow Jones Industrial Average had a 349.89-point jump, or 0.88%, to get to 39,908 and approach the 40,000 points mark. Nasdaq Composite, on the other hand, recorded the highest jump of 1.40% and closed at 16,742.39.

The CPI rose 0.3% in April, coming below the predicted 0.4%, which was the increase in March. However, the CPI’s increase of 3.4% over the span of 12 months was as expected. Additionally, the key core inflation, which doesn’t take into account the cost of food and energy, also showed signs of cooling down.

“Markets really wanted these reports to be soft, and they got what they wanted,” Macro Institute’s senior investment strategist Brian Nick told CNBC.

The traders now expect that the Federal Reserve will look into easing interest rates sooner rather than later. According to the CME FedWatch Tool, there is a 75.3% probability that the Fed will announce a rate cut at its meeting in September.

The post S&P 500, Nasdaq, and Dow Close at All-Time High Amid Promising CPI Report appeared first on financialreader.com.

Thanks to a “robust demand for travel,” Airbnb posted $2.14 billion in revenue, which is 18% higher compared to revenue of $1.82 billion in the same period in 2023. This was enough to comfortably surpass the $2.06 billion expected by Wall Street analysts. Additionally, the company had a net income of $264 million, or 41 cents per share, versus 24 cents expected.

While Airbnb expects that the demand for vacation rentals will remain high leading into the summer, it remains conservative about its revenue in the second quarter. It forecasts revenue between $2.68 billion and $2.74 billion, while analysts expect $2.74 billion for Q2. According to the company, its forecast is based on currency exchange rates and the “timing of Easter,” which boosted the Q1 earnings but might be the current quarter.

Airbnb stock closed on Wednesday at $157.90 per share, being 1.20% down for the day but 17.42% higher year-to-date. After the weak forecast for Q2 was made public, Airbnb shares dived 7.92% to $145.40.

The post Airbnb Reports Strong Q1 Earnings, Stock Slides After Weak Q2 Forecast appeared first on financialreader.com.

Bank of America shares remained flat after the company reported an 18% decline in first-quarter profits compared to the previous year. In contrast, Morgan Stanley stocks rose marginally after the company beat first-quarter earnings expectations.

Investors are anxiously observing the rising tension in the Middle East following Iran’s drone attack against Israel. While the onslaught was quashed, it remains to be seen how Israel will respond to the attack. Bond yields continued to climb after reaching their 2024 high on Monday, rising another 5 basis points on Tuesday to 4.65%.

The post Dow Jones Rises Amid Bank of America Earnings and Middle East Tension appeared first on financialreader.com.

According to Wall Street estimates, March’s CPI is set to show a 3.4% gain on an annual basis, thereby rising from February’s 3.2% year-over-year gain. Core inflation is set to rise 3.7% year-over-year, a little lower than February’s yearly rise of 3.8%.

Should the estimates prove to be accurate, the CPI data would suggest that a challenging road lies ahead in the battle to bring inflation down to the Federal Reserve’s 2% target. Still, investors are largely expecting the central bank to introduce rate cuts this year, possibly in June. Optimistic forecasts expect the Fed to implement as many as three interest rate cuts over the remainder of 2024.

The post CPI May Slash Hopes for Interest Rate Cuts appeared first on financialreader.com.

In Europe, stocks edged lower, with those on the Stoxx Europe 600 slipping by 0.1%. The yield on 10-year Treasuries remained static at 4.24%, while in commodities, Brent crude slipped 0.2% to $86.55 per barrel while spot gold remained unchanged. Bitcoin edged 0.3% lower to $70,753.54.

US durable goods and consumer confidence data are set to be released later today, with the U.S. government’s personal consumption expenditures (PCE) price index due on Friday. Federal Reserve Chair Jerome Powell is slated to speak on Friday as well.

The post Futures Tick Higher Following Stock Rally Pause appeared first on financialreader.com.

February’s CPI is expected to show headline inflation of 3.1%, thereby matching Januarty’s figure, estimates from Bloomberg showed. On a “core” basis, which excludes volatile costs such as food and gas, inflation is expected to be 3.7%; a decline from the 3.9% core inflation experienced in January.

Compared to the previous month, consumer prices are expected to rise by 0.4%; a slight increase from the 0.3% gain in January. In a note to clients, Bank of America economists Stephen Juneau and Michael Gapen commented that the expected monthly decrease in core prices “should alleviate concerns that inflation is reaccelerating after the January data.”

The post Investors Await CPI for Outlook on Federal Reserve Policy appeared first on financialreader.com.

Doubts over how long the ongoing tech rally will persist were largely driven by reports that Apple’s iPhone sales in China plummeted by 24%. This update came after the tech giant was hit with a $2 billion EU antitrust fine. Electric vehicle maker Tesla has suffered a production setback of its own following the shutdown of its Berlin Gigafactory, thus adding to shipment concerns.

Investors now await Federal Reserve President Jerome Powell’s testimony to U.S. Congress on Wednesday. Anxiety has risen after Atlanta Fed President Raphael Bostic suggested that there may be as little as one interest rate cut this year, slated for the third quarter. Powell’s address is expected to provide insight into the central bank’s plan of action.

The post U.S. Futures Decline Amid Tech and Rate Cut Concerns appeared first on financialreader.com.

“There is a lot of economic data coming in this week, which will be more decisive for whether investors will stay in a risk-on mood,” Tatjana Puhan, chief investment officer at Copernicus Wealth Management observed. Puhan added that if US companies’ earnings remain positive, then stocks could continue their positive momentum.

The Personal Consumer Expenditure (PCE) index—the Federal Reserve’s preferred inflation gauge—is set to be released on Thursday, with headline and core PCE expected to come in at a 0.4% month-over-month rise. This is a rise from the 0.2% increase experienced last month.

The post Stocks Pause as Investors Brace for Influx of Data appeared first on financialreader.com.

Such activity comes after investors’ hopes of an incoming interest rate cut by the Federal Reserve took a knock as inflation came in hotter than expected last month. Monthly retail sales fell compared to the previous month, thereby adding to investors’ policy woes.

Following this unexpected resurgence in inflation data, investors will turn their focus to the minutes of the Federal Reserve’s previous meeting, which are set to be released on Wednesday. Survey-based purchasing managers’ index data is expected the following day, thereby providing an insight into the economic health of the eurozone and the UK.

The post Dollar Holds Strong as Rate Cut Hopes Dashed appeared first on financialreader.com.

Retail sales, due to be released on Thursday, are expected to have declined by 0.1% in January, down from a 0.6% rise in December, according to Reuters. Economists are expecting the Consumer Price Index (CPI) to rise 2.9% in January, compared to a 3.4% rise the previous month.

“Psychologically, dropping down into the 2s (in the CPI year-on-year) even though it is 2.9% for the headline CPI number would be a good boost for market sentiment,” Amo Sahota, executive director at FX consulting firm Klarity FX observed, before warning investors to await the release of the CPI results before crafting any expectations.

The post Dollar Rises Ahead of Inflation and Sales Data appeared first on financialreader.com.

S&P 500 saw a 1.17% jump, closing at a record 5,308.15 points. This was the first time that the index surpassed the 5,300 mark.

The Dow Jones Industrial Average had a 349.89-point jump, or 0.88%, to get to 39,908 and approach the 40,000 points mark. Nasdaq Composite, on the other hand, recorded the highest jump of 1.40% and closed at 16,742.39.

The CPI rose 0.3% in April, coming below the predicted 0.4%, which was the increase in March. However, the CPI’s increase of 3.4% over the span of 12 months was as expected. Additionally, the key core inflation, which doesn’t take into account the cost of food and energy, also showed signs of cooling down.

“Markets really wanted these reports to be soft, and they got what they wanted,” Macro Institute’s senior investment strategist Brian Nick told CNBC.

The traders now expect that the Federal Reserve will look into easing interest rates sooner rather than later. According to the CME FedWatch Tool, there is a 75.3% probability that the Fed will announce a rate cut at its meeting in September.

The post S&P 500, Nasdaq, and Dow Close at All-Time High Amid Promising CPI Report appeared first on financialreader.com.

Thanks to a “robust demand for travel,” Airbnb posted $2.14 billion in revenue, which is 18% higher compared to revenue of $1.82 billion in the same period in 2023. This was enough to comfortably surpass the $2.06 billion expected by Wall Street analysts. Additionally, the company had a net income of $264 million, or 41 cents per share, versus 24 cents expected.

While Airbnb expects that the demand for vacation rentals will remain high leading into the summer, it remains conservative about its revenue in the second quarter. It forecasts revenue between $2.68 billion and $2.74 billion, while analysts expect $2.74 billion for Q2. According to the company, its forecast is based on currency exchange rates and the “timing of Easter,” which boosted the Q1 earnings but might be the current quarter.

Airbnb stock closed on Wednesday at $157.90 per share, being 1.20% down for the day but 17.42% higher year-to-date. After the weak forecast for Q2 was made public, Airbnb shares dived 7.92% to $145.40.

The post Airbnb Reports Strong Q1 Earnings, Stock Slides After Weak Q2 Forecast appeared first on financialreader.com.

Bank of America shares remained flat after the company reported an 18% decline in first-quarter profits compared to the previous year. In contrast, Morgan Stanley stocks rose marginally after the company beat first-quarter earnings expectations.

Investors are anxiously observing the rising tension in the Middle East following Iran’s drone attack against Israel. While the onslaught was quashed, it remains to be seen how Israel will respond to the attack. Bond yields continued to climb after reaching their 2024 high on Monday, rising another 5 basis points on Tuesday to 4.65%.

The post Dow Jones Rises Amid Bank of America Earnings and Middle East Tension appeared first on financialreader.com.

According to Wall Street estimates, March’s CPI is set to show a 3.4% gain on an annual basis, thereby rising from February’s 3.2% year-over-year gain. Core inflation is set to rise 3.7% year-over-year, a little lower than February’s yearly rise of 3.8%.

Should the estimates prove to be accurate, the CPI data would suggest that a challenging road lies ahead in the battle to bring inflation down to the Federal Reserve’s 2% target. Still, investors are largely expecting the central bank to introduce rate cuts this year, possibly in June. Optimistic forecasts expect the Fed to implement as many as three interest rate cuts over the remainder of 2024.

The post CPI May Slash Hopes for Interest Rate Cuts appeared first on financialreader.com.

In Europe, stocks edged lower, with those on the Stoxx Europe 600 slipping by 0.1%. The yield on 10-year Treasuries remained static at 4.24%, while in commodities, Brent crude slipped 0.2% to $86.55 per barrel while spot gold remained unchanged. Bitcoin edged 0.3% lower to $70,753.54.

US durable goods and consumer confidence data are set to be released later today, with the U.S. government’s personal consumption expenditures (PCE) price index due on Friday. Federal Reserve Chair Jerome Powell is slated to speak on Friday as well.

The post Futures Tick Higher Following Stock Rally Pause appeared first on financialreader.com.

February’s CPI is expected to show headline inflation of 3.1%, thereby matching Januarty’s figure, estimates from Bloomberg showed. On a “core” basis, which excludes volatile costs such as food and gas, inflation is expected to be 3.7%; a decline from the 3.9% core inflation experienced in January.

Compared to the previous month, consumer prices are expected to rise by 0.4%; a slight increase from the 0.3% gain in January. In a note to clients, Bank of America economists Stephen Juneau and Michael Gapen commented that the expected monthly decrease in core prices “should alleviate concerns that inflation is reaccelerating after the January data.”

The post Investors Await CPI for Outlook on Federal Reserve Policy appeared first on financialreader.com.

Doubts over how long the ongoing tech rally will persist were largely driven by reports that Apple’s iPhone sales in China plummeted by 24%. This update came after the tech giant was hit with a $2 billion EU antitrust fine. Electric vehicle maker Tesla has suffered a production setback of its own following the shutdown of its Berlin Gigafactory, thus adding to shipment concerns.

Investors now await Federal Reserve President Jerome Powell’s testimony to U.S. Congress on Wednesday. Anxiety has risen after Atlanta Fed President Raphael Bostic suggested that there may be as little as one interest rate cut this year, slated for the third quarter. Powell’s address is expected to provide insight into the central bank’s plan of action.

The post U.S. Futures Decline Amid Tech and Rate Cut Concerns appeared first on financialreader.com.

“There is a lot of economic data coming in this week, which will be more decisive for whether investors will stay in a risk-on mood,” Tatjana Puhan, chief investment officer at Copernicus Wealth Management observed. Puhan added that if US companies’ earnings remain positive, then stocks could continue their positive momentum.

The Personal Consumer Expenditure (PCE) index—the Federal Reserve’s preferred inflation gauge—is set to be released on Thursday, with headline and core PCE expected to come in at a 0.4% month-over-month rise. This is a rise from the 0.2% increase experienced last month.

The post Stocks Pause as Investors Brace for Influx of Data appeared first on financialreader.com.

Such activity comes after investors’ hopes of an incoming interest rate cut by the Federal Reserve took a knock as inflation came in hotter than expected last month. Monthly retail sales fell compared to the previous month, thereby adding to investors’ policy woes.

Following this unexpected resurgence in inflation data, investors will turn their focus to the minutes of the Federal Reserve’s previous meeting, which are set to be released on Wednesday. Survey-based purchasing managers’ index data is expected the following day, thereby providing an insight into the economic health of the eurozone and the UK.

The post Dollar Holds Strong as Rate Cut Hopes Dashed appeared first on financialreader.com.

Retail sales, due to be released on Thursday, are expected to have declined by 0.1% in January, down from a 0.6% rise in December, according to Reuters. Economists are expecting the Consumer Price Index (CPI) to rise 2.9% in January, compared to a 3.4% rise the previous month.

“Psychologically, dropping down into the 2s (in the CPI year-on-year) even though it is 2.9% for the headline CPI number would be a good boost for market sentiment,” Amo Sahota, executive director at FX consulting firm Klarity FX observed, before warning investors to await the release of the CPI results before crafting any expectations.

The post Dollar Rises Ahead of Inflation and Sales Data appeared first on financialreader.com.