HomeWorldUSThis is inflation day. Wall Street futures point to decline ahead...

This is inflation day. Wall Street futures point to decline ahead of CPI release.

U.S. stock index futures fall on Tuesday of release of key inflation data that could determine if the backup is in bond yields are maintained.

What is happening
  • Futures on Dow Jones industrial index YM00,
    fell 145 points, or 0.4%, to 34074.

  • Futures on S&P 500ES00,
    dropped 18 points, or 0.4%, to 4391.

  • Futures on NASDAQ 100 NQ00,
    decreased 46.75 points or 0.3% to 13953.

On Monday, the Dow Jones Industrial Average (DJIA),
fell 413 points, or 1.19%, to 34308, S&P 500 SPX,
declined 76 points or 1.69%, up to 4413, and Nasdaq Composite COMP,
fell 299 points, or 2.18%, to 13412.

The S&P 500 ended trading. session down 7% on they are.

What drives the markets

Output on landmark 10-year Treasury TMUBMUSD10Y,
on Monday up another 7 basis points up to 2.78%, which means highest profitability since January 18, 2019

splash in returns make stocks less attractive on relative basis.

“BUT new three-year high in US 10-year Treasury yield ahead of today’s inflation data put pressure on back on US growth shares,” said Ian Williams, strategist at UK brokerage Peel Hunt.

key report of day will be release of March Consumer price index report, at 8:30 am EST. Economists polled by The Wall Street Journal expect growth of 1.1%. rise year-over-year rate up to 8.4%. Base CPI visible rising 0.5%.

“If someone said before COVID what we would see 8% year-over-year inflation again ever, I suspect the most financial market participants I would brush them off like crazy,” said Stephen Stanley, chief economist at Amherst Pierpont Securities. “There was and is a number of extenuating circumstances (COVID bottlenecks, war, etc.), but in the end of day, it clear and irrefutable evidence of colossal failure Fed”.

Stanley said he expects inflation to peak in March. “These modest monthly advances in April and May will replace the huge rises from spring of 2021 in 12 month calculation. In fact, we could have everything way back down to 7% by June, after which moderation could slow down dramatically.”


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Tyler Hromadka
Tyler Hromadka
Tyler is working as the Author at World Weekly News. He has a love for writing and have been writing for a few years now as a free-lancer.

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