March core CPI rose by 0.4%, and investors see interest rates pause possibility in May
Individual technology stock prices were mixed on Wednesday, whereas the main Wall Street indexes remained higher at the same time.
By 13:25 ET, the S&P 500 benchmark was up by 0.20 percent to 4,117.56 basis points, and the Dow futures rose by 0.29 percent to 33,763.46 basis points. As for tech stocks, Apple gained 0.2%, Microsoft rose by 0.9%, and Meta won the top gainers by jumping by 1%. Unfortunately, other stocks failed in today’s session, including Tesla, which declined by 1.25 percent; Alphabet Inc., which edged lower by 0.01 percent; and Amazon, which fell by 0.83 percent. The total Nasdaq composite rose slightly higher by 0.07 percent, while the U.S. dollar is currently down by 0.69 percent.
The U.S. public’s interest in inflation and the financial system has increased a lot in recent weeks, especially due to the fear of hitting a new market recession. The Core CPI report on Wednesday revived investors’ hopes for an interest rate hike or at least an easing of monetary policy.
On Wednesday morning, the U.S. Labor Department revealed the headline and the Core CPI report. Beating all market expectations, the consumer price index in the U.S. is slowing down. Core CPI rose slightly by 0.4% in March. As for the headline, the reports show the data rose slightly by 0.1%, beating market expectations of 0.2%.
On a month-to-month basis, the core CPI is far from the target of the FED. That usually means that there will be more interest rate jokes at the next meetings. Still, despite the confidence shown by the FED officials, the public has another opinion to share.
The public’s interest in the U.S. financial system increased, and in turn, they became more aware of the challenges that the U.S. is facing. This has affected their future outlook, making them more pessimistic. particularly on the banking system, interest rates, stock growth, and the U.S. dollar’s growth.
Previously, there were growing concerns about the US dollar as the world’s most important reserve currency. There were several reports and forecasts over the past three months about the U.S. dollar. Yet, for the first time in decades, the threat might be real this time.
The BRICS nations are surpassing the G7 in terms of power, number, and global influence. The BRICS are now constantly the world’s top economic power and largest oil supplier. The union might eliminate the U.S. dollar and end its reign.
The alliance has already taken measures that enable it to surpass U.S. market dominance. Part of these measures is replacing the U.S. dollar by accepting foreign currencies in their oil and gas transactions. Oil production cuts are also a contributing factor because they help weaken the U.S. dollar. Plus, other measures and factors, including political unions.
That said, after the banking turmoil last month, market uncertainty is at a critical level. That makes it hard to put forth any accurate forecasts and expectations. Particularly when it comes to inflation, the market dominates.