(Bloomberg) – Wall Street traders were not worried about the potential impact of US tariffs on inflation. The easing from economic data, which highlights concerns about price pressures, highlights that the Federal Reserve is not in a hurry to cut interest rates.
Most of them read from Bloomberg
This week’s profits have been wiped out, with the S&P 500 down about 1%. President Donald Trump said he will announce mutual taxation in his trade war escalation next week. United States Steel Corp. was sunk after Nippon Steel Corp. showed that it was considering investing in the company instead of buying it entirely. The stock was under pressure after showing a slide in consumer sentiment amid concerns over inflation. Mixed employment figures highlighted a modest but healthy labor market and wage jumps. Bonds fell. Megacaps slides amid a disappointing outlook from Amazon.com Inc.
The latest economic measurements help explain why policymakers show that after three interest rate cuts last year, they are not in a hurry to lower their borrowing costs. Traders are still betting on their next move, but they’re fully priced in September.
“The broader picture remains one of the sustained resilience and wage pressures in the labour market,” said Sheema Shah, a key asset management. “This only gives the Fed little reason to cut policy rates immediately.”
The Nasdaq 100 lost 1.3%. The Dow Jones industrial average slipped 1%. The “Epic Seven” Mega Cup gauge sank 2%. The Russell 2000 fell 1.2%. Amazon fell about 4%. According to information obtained by Bloomberg News, Roblox Corp. is part of an aggressive investigation by the Securities and Exchange Commission.
The Treasury yield for 2010 increased its five basis points to 4.49%. The Bloomberg Dollar Spot Index rose 0.2%.
Non-farm payroll increased by 143,000 last month after an upward revision for the past two months. Other revisions, made once a year, were not as serious as they once thought. Last year, the average monthly average was 166,000, a slowdown from the first reported 186,000 pace.
The unemployment rate was 4.0%. The survey was used to create a separate revised edition built into the beginning of the year to reflect new population estimates, and this figure cannot be compared to the past few months. During that time, hourly wages rose by 0.5%.
“Strong wage growth is good for workers and should be seen as positive for consumer spending,” says Brett Kenwell of Etro. “But Wall Street has been looking closely at this gauge for the last few years.
Outside of the results of the headline, the latest employment report is not the cause of the alarm, he said.
“Some investors may be worried about the impact on inflation and rate reductions, but there’s no mistake about that. It’s better to have a strong economy and labor market than to deteriorate the environment. Kenwell said Remember that you concluded.
For Neil Dutta, Renaissance Macro Research, the fixed income response to data is an opportunity to advance the asset class for a long time.
“In the end, the Fed needs to cut fees because too many don’t work at such high prices,” says Dutta. “Looking at the data itself, cyclical regions of the labour market are slower. The goods that produce jobs are softer, and the total manufacturing time has decreased.”
But Dutta also said that the Fed is likely to be on the sidelines due to the low unemployment rate.
“The Fed is not in a tolerant mood right now,” he said. “They are looking for a reason to wait, and today’s report gives them that.”
Federal Gov. Adriana Kugler will maintain the Fed’s benchmark interest rate for a while given the stable labor market, limited advances in inflation in recent months, and uncertainty regarding the outlook for fiscal and trade policy. He said that it was appropriate. Meanwhile, Minneapolis Federal President Neil Kashkari predicts that inflation will continue to cool towards its 2% target, with policymakers saying that by the end of the year, policymakers could “conservatively” cut interest rates. I stated.
Lindsay Rosner of Goldman Sachs Asset Management says the Fed will likely be cautious about reading today’s reports too much.
“Every time, the Fed should feel like they’re sitting closely for the rest of the winter. We know that pressing the rate reduction pause button is the right decision,” says Allianz said Charlie Ripley of Investment Management.
According to Jason Pride of GLENMEDE, the Fed has already boosted expectations for the next rate cut.
“The Federal Reserve has another round of inflation and employment data that will sluggishly before the next scheduled announcement on March 19th,” Bankrate’s Mark Hamrick said. “I’ve recently chosen to stand on putt, so I’ve seen him remain patient before making another interest rate move.”
According to Bloomberg’s economics, the January consumer price index report for January could prove a mixed bag of the inflation combat Fed, but retail sales could have probably declined.
“Core CPI was surprised by the January yields of January 2013 over the last 14 years. The yields rose on six of the last 7th July,” said Guneet Dhingra of BNP Paribas. Masu. “But this year we were able to see asymmetry towards lower yields. The upward print may be considered a “normal” January distortion, but the downside print is good news. will be considered. ”
Company highlights:
Amazon.com Inc. warned investors that despite plans to invest around $100 billion this year, they could face capacity constraints for the cloud computing sector. Most money offers artificial intelligence services for data centers, homemade chips and other equipment.
Apple Inc. is planning to announce a long-standing overhaul of the iPhone SE in the coming days. This is a move to modernize low-cost models to drive growth and tempt consumers to switch from other brands.
Pinterest Inc. has earned holiday quarterly revenue and has given away a bright forecast of sales for the current period.
Software company CloudFlare Inc. reported its fourth quarter results that beat expectations.
Expedia Group Inc. posted better than expected total bookings in the last few months of 2024, reflecting the resilient demand for travel during the winter holiday season.
Nikola Corp. investigates the possibility of bankruptcy filing, according to people familiar with the issue following a turbulent period in which electric truck makers shaking between stock market beloved and scandal-stricken companies. It’s there.
Some of the main market movements:
stock
The S&P 500 has dropped by 0.95% as of 4pm in New York
The Nasdaq100 fell 1.3%
Dow Jones’ industrial average fell by 1%
MSCI World Index has decreased by 0.8%
Bloomberg’s magnificent 7 total revenue index fell 2%
Russell 2000 index fell 1.2%
currency
Bloomberg Dollar Spot Index rose 0.2%
The euro fell 0.5% to $1.0329
The UK pound fell 0.2% to $1.2409
The Japanese yen was 151.29 dollars, but little changed.
Cryptocurrency
Bitcoin fell 0.9% to $95,923.59
Ether fell 4% to $2,601.22
Bonds
Treasury yields increased by 5 basis points to 4.49% in 2010
Germany’s 10-year yield was 2.37%, but little changed
The UK’s 10-year yield was 4.48%, but little changed
merchandise
West Texas intermediate crude rises 0.5% to $70.95 barrels
Spot Gold rose 0.2% to $2,861.96 ounces
This story was created with the support of Bloomberg Automation.
– Support from Lynn Thomason, Allegra Cateri and Robert Brand.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
