Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Rate-sensitive and tech-heavy Nasdaq Composite gained over 1% at the 12,306 mark and the general S&P 500 index inched up 0.45% to 4,137 on Wednesday’s trading session as investors reacted positively to the decline of the U.S. CPI-inflation rate to 4.9% in April, raising hopes that the Federal Reserve’s interest rate hiking cycle is close to an end.

The Labor Department’s Consumer Price Index (CPI), which measures the cost of a broad swath of goods and services, rose 4.9% in April from a year ago, compared with expectations of a 5% increase, while the month-over-month CPI rose 0.4% in April after gaining 0.1% in March.

According to the report, declines in prices for fuel oil, new vehicles, and food at home were offset somewhat by increases in shelter, gasoline, and used vehicles.

Core CPI, a widely followed measure of inflation that excludes volatile food and energy categories, rose 0.4% monthly and 5.5% from a year ago, both in line with expectations.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Rate-sensitive and tech-heavy Nasdaq Composite gained over 1% at the 12,306 mark and the general S&P 500 index inched up 0.45% to 4,137 on Wednesday’s trading session as investors reacted positively to the decline of the U.S. CPI-inflation rate to 4.9% in April, raising hopes that the Federal Reserve’s interest rate hiking cycle is close to an end.

The Labor Department’s Consumer Price Index (CPI), which measures the cost of a broad swath of goods and services, rose 4.9% in April from a year ago, compared with expectations of a 5% increase, while the month-over-month CPI rose 0.4% in April after gaining 0.1% in March.

According to the report, declines in prices for fuel oil, new vehicles, and food at home were offset somewhat by increases in shelter, gasoline, and used vehicles.

Core CPI, a widely followed measure of inflation that excludes volatile food and energy categories, rose 0.4% monthly and 5.5% from a year ago, both in line with expectations.

Fed funds futures traders are now pricing in a pause in rate increases at the central bank’s June meeting, and less than a 5% chance of another 25-basis point hike, while they expect a Fed rate cut beginning this summer as the inflation rates are easing.

CPI inflation still has held above the Fed’s 2% annual target, despite the central bank’s 10 consecutive interest rate increases (totaling 5% bps) to bring it down from the 40-year high of 9% in June 2022.

 

Market reaction:

The relief in inflationary pressure boosted growth-sensitive technology stocks, with large-cap tech names including Alphabet (Google) and Amazon settling higher by 4.10% and 3.35% respectively, Microsoft added 1.7%, while Apple and Netflix ended the session with 1% gains.

Growth companies including the technologies, rely more on borrowed money so they benefit from lower interest rates, while they also provide safety and diversification during market turmoil.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

The risk-off mood is also impacting growth-sensitive assets, with Brent and WTI crude oil contracts falling over 1% to $76.50/b and $72.50/b respectively, while Copper dropped 1,2% to $3.84/lb.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

The risk-off mood is also impacting growth-sensitive assets, with Brent and WTI crude oil contracts falling over 1% to $76.50/b and $72.50/b respectively, while Copper dropped 1,2% to $3.84/lb.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

A similar picture is seen in Asia, where Hong Kong’s Hang Seng index extended its Tuesday losses by 0.45%, Japan’s Nikkei 225 fell by 0.41%, while German DAX and French CAC dropped by 0.20%.

The risk-off mood is also impacting growth-sensitive assets, with Brent and WTI crude oil contracts falling over 1% to $76.50/b and $72.50/b respectively, while Copper dropped 1,2% to $3.84/lb.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

A similar picture is seen in Asia, where Hong Kong’s Hang Seng index extended its Tuesday losses by 0.45%, Japan’s Nikkei 225 fell by 0.41%, while German DAX and French CAC dropped by 0.20%.

The risk-off mood is also impacting growth-sensitive assets, with Brent and WTI crude oil contracts falling over 1% to $76.50/b and $72.50/b respectively, while Copper dropped 1,2% to $3.84/lb.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

All three major indices ended Tuesday’s trading session in the red, with the S&P 500 pulling back by 0.46%, the Nasdaq Composite dropping 0.63%, while the Dow Jones saw a smaller decline of 0.17%.

A similar picture is seen in Asia, where Hong Kong’s Hang Seng index extended its Tuesday losses by 0.45%, Japan’s Nikkei 225 fell by 0.41%, while German DAX and French CAC dropped by 0.20%.

The risk-off mood is also impacting growth-sensitive assets, with Brent and WTI crude oil contracts falling over 1% to $76.50/b and $72.50/b respectively, while Copper dropped 1,2% to $3.84/lb.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

All three major indices ended Tuesday’s trading session in the red, with the S&P 500 pulling back by 0.46%, the Nasdaq Composite dropping 0.63%, while the Dow Jones saw a smaller decline of 0.17%.

A similar picture is seen in Asia, where Hong Kong’s Hang Seng index extended its Tuesday losses by 0.45%, Japan’s Nikkei 225 fell by 0.41%, while German DAX and French CAC dropped by 0.20%.

The risk-off mood is also impacting growth-sensitive assets, with Brent and WTI crude oil contracts falling over 1% to $76.50/b and $72.50/b respectively, while Copper dropped 1,2% to $3.84/lb.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

Global markets edged lower during Wednesday’s morning session as investors are looking for April’s U.S. CPI-consumer price index due out later the day coupled with mounting worries over the U.S. debt ceiling.

All three major indices ended Tuesday’s trading session in the red, with the S&P 500 pulling back by 0.46%, the Nasdaq Composite dropping 0.63%, while the Dow Jones saw a smaller decline of 0.17%.

A similar picture is seen in Asia, where Hong Kong’s Hang Seng index extended its Tuesday losses by 0.45%, Japan’s Nikkei 225 fell by 0.41%, while German DAX and French CAC dropped by 0.20%.

The risk-off mood is also impacting growth-sensitive assets, with Brent and WTI crude oil contracts falling over 1% to $76.50/b and $72.50/b respectively, while Copper dropped 1,2% to $3.84/lb.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.

Global markets edged lower during Wednesday’s morning session as investors are looking for April’s U.S. CPI-consumer price index due out later the day coupled with mounting worries over the U.S. debt ceiling.

All three major indices ended Tuesday’s trading session in the red, with the S&P 500 pulling back by 0.46%, the Nasdaq Composite dropping 0.63%, while the Dow Jones saw a smaller decline of 0.17%.

A similar picture is seen in Asia, where Hong Kong’s Hang Seng index extended its Tuesday losses by 0.45%, Japan’s Nikkei 225 fell by 0.41%, while German DAX and French CAC dropped by 0.20%.

The risk-off mood is also impacting growth-sensitive assets, with Brent and WTI crude oil contracts falling over 1% to $76.50/b and $72.50/b respectively, while Copper dropped 1,2% to $3.84/lb.

All eyes will be on the latest US inflation report which should offer more insights on the path of the Federal Reserve’s monetary policy and interest rate hikes, and whether Fed’s rate hikes are working to ease record-high inflation.

Analysts polled by Dow Jones expect inflation to have increased 0.4% month-over-month in April, and 5% year-over-year, which is well above Fed’s 2% target. Core prices, which exclude volatile food and energy components, are expected to have climbed 0.4%.

U.S. Consumer Price Index (CPI) year-over-year

Adding to the inflation story, worries about the U.S. debt ceiling loom over global markets as investors are carefully watching the negotiations between President Joe Biden with top congressional leaders for any progress on the subject.

The US debt-ceiling deadlock remains a big concern for investors as in case of no agreement to lift the debt ceiling before the June 01 deadline, the federal government will set to run out of money which could increase the risk of default.

Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default on its debt.

Defaulting on sovereign debt would wreak havoc on the economy and roil markets around the world. A Moody’s report last year said a default on Treasury bonds could throw the U.S. economy into a tailspin as bad as the Great Recession, with U.S. GDP dropping 4% and 6 million workers would lose their jobs.