Tracking the Markets: US Consumer Prices Rise, Stocks Fall, Yields and Commodities Shift
By US consumer prices rose 0.5% month-over-month in January, the most in three months, in-line with market expectations.[0] The annual inflation rate in the US eased to 6.4% in January from 6.5% in December, while the core rate excluding food and energy cooled for the fourth consecutive month to 5.6%.[1] That was above the market's forecast of 5.5% but still the lowest reading since December 2021.[2]
The 10-year Treasury yield rose to 3.76% Tuesday, rebounding from Monday's losses. The 10-year yield rose to 3.78% Wednesday morning after the retail sales numbers. Despite initial claims coming in at a higher-than-anticipated 196,000, compared to the expected 190,000, the yield on the benchmark 10-year Treasury note increased by 3 basis points to 3.68%.
US stocks traded lower as the aftermath of the CPI was digested by the markets.[3] The S&P 500 (SPX) ended the week 1.1% lower, the Nasdaq Composite Index (IXIC) dropped 2.4%, and the Dow Jones Industrial Average (DJI) remained relatively unchanged, declining by just 0.17%.[3] Prior to the start of trading on Wednesday, the Dow Jones futures experienced a 0.3% decrease compared to its estimated value, while S&P 500 futures dropped by 0.35%.[4] The tech-focused Nasdaq 100 futures dropped by 0.35% in the early hours.[5]
Crude oil futures have seen a decrease of $0.60, bringing the price to $79.12 per barrel, after a surge of $1.66 over the Friday prior, when the price was $79.72[6] After dropping $4 to settle at $1,874.50 per ounce in the prior session, gold futures are now down by an additional $4.70 to hit $1,869.80 an ounce.[6] On Tuesday, silver saw a 0.5% decrease in value, settling at $21.74, while copper experienced a 0.[1]
It is important to remember that foreign exchange trading carries a high level of risk that may not be suitable for all investors.[7] It is advised to carefully consider whether trading is appropriate for you based on your personal circumstances and to seek advice from an independent financial or tax advisor if you have any questions.[7]
Investing in the markets can be a lucrative decision when done correctly. Investors should be aware of the latest market news and trends, as well as the commodities and currencies available for trading.
0. “S&P 500, Nasdaq, Dow end choppy session with mixed performance after CPI data (SP500)” Seeking Alpha, 14 Feb. 2023, https://seekingalpha.com/news/3935955-cpi-data-leads-to-choppy-trading-mixed-finish-for-sp-500-nasdaq-dow
1. “Dow Falls 150 Points; US Consumer Prices Rise 0.5% In January – Endava (NYSE:DAVA), Denny's (NASDAQ:DENN)” Benzinga, 14 Feb. 2023, https://www.benzinga.com/news/earnings/23/02/30900435/dow-falls-150-points-us-consumer-prices-rise-0-5-in-january
2. “Market Caution Returns on Hot US CPI Data” Action Forex, 15 Feb. 2023, https://www.actionforex.com/contributors/fundamental-analysis/486470-market-caution-returns-on-hot-us-cpi-data/
3. “Dow Jones, Nasdaq, S&P 500 weekly preview: Use Q1 rally to cut stocks exposure By Investing.com” Investing.com, 13 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-jones-nasdaq-sp-500-weekly-preview-use-q1-rally-to-cut-stocks-exposure-3001760
4. “S&P 500, Nasdaq, Dow ride high Monday as markets await new CPI data” Proactive Investors USA, 13 Feb. 2023, https://www.proactiveinvestors.com/companies/news/1005920/s-p-500-nasdaq-dow-ride-high-monday-as-markets-await-new-cpi-data-1005920.html
5. “Futures Extend Losses On Strong Retail Sales; Tesla Rallies On Buy Rating” Investor's Business Daily, 15 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-fall-ahead-of-retail-sales-tesla-stock-races-higher-on-buy-rating/
6. “Futures Pointing To Initial Strength On Wall Street” RTTNews, 13 Feb. 2023, https://www.rttnews.com/3343714/futures-pointing-to-initial-strength-on-wall-street.aspx
7. “Markets Week Ahead: Dow Jones, Nasdaq 100, US Dollar, AUD/USD, US CPI” DailyFX, 12 Feb. 2023, https://www.dailyfx.com/news/markets-week-ahead-dow-jones-nasdaq-100-us-dollar-aud-usd-us-cpi-20230212.html
