Wall St set to rise as traders hold on to rate-cut bets after inflation data
Reuters
Published Mar 12, 2024 20:37
Updated Mar 13, 2024 00:10
By Bansari Mayur Kamdar and Shashwat Chauhan
(Reuters) - Wall Street was set to open higher on Tuesday, as traders held on to bets that the Federal Reserve will cut rates in the coming months following inflation data.
A Labor Department report showed the Consumer Price Index (CPI) rose 0.4% on a monthly basis in February, in line with the 0.4% increase expected by economists polled by Reuters.
Excluding volatile food and energy components, consumer prices increased 0.4% in February after rising by the same margin in January.
"We're on a glide path to a June rate cut and I don't think that there's any kind of change to that yet," said Robert Pavlik, senior portfolio manager at Dakota Wealth.
"I'm still expecting three rate cuts sometime this year."
Traders are now seeing a 70% chance of the first rate cut coming in June, according to the CME FedWatch Tool, from 71% ahead of the data.
Last month's stock market rally was slowed by data showing signs of a robust economy and sticky inflation, as traders pushed back their expectations on the timing of the Fed's first rate cut to June from March.
At 08:45 a.m. ET, Dow e-minis were up 126 points, or 0.32%, S&P 500 e-minis were up 32.5 points, or 0.63%, and Nasdaq 100 e-minis were up 148.5 points, or 0.83%.
Megacap growth stocks advanced in premarket trading, led by AI darling Nvidia, which was up 2.8%.
Oracle (NYSE:ORCL) jumped 12.3% on signs the firm was making progress in its plan to grab a share of the cloud-computing market, thanks to its tie-up with AI chip giant Nvidia.
Boeing (NYSE:BA) shed 1.4% after a report said an audit by the Federal Aviation Administration found dozens of problems with the 737 MAX's production.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.