CPI Inflation Falls To Lowest Level Since March 2021: Traders Rethink Fed's Policy Outlook
Portfolio Pulse from Piero Cingari
The U.S. consumer price index (CPI) inflation decelerated more than predicted in June, leading to a drop in the annual inflation rate from 4% in May to 3% in June. This has increased investor conviction that the Fed may decide for only one more rate hike and then halt its tightening cycle. Following the release of the data, the dollar tumbled, treasury yields declined, and S&P 500 futures rose. The SPDR S&P 500 ETF Trust (NYSE:SPY) and the SPDR Gold Trust ETF (NYSE:GLD) were positively impacted.
July 12, 2023 | 12:49 pm
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POSITIVE IMPACT
The SPDR Gold Trust ETF (NYSE:GLD) rose 0.8%, buoyed by a lower U.S. dollar and declining Treasury yields.
The lower than expected inflation data has led to a drop in the dollar and a decline in Treasury yields, which is likely to positively impact the GLD ETF in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) finished the last two sessions in the green following the release of the inflation data.
The lower than expected inflation data has led to a rise in S&P 500 futures, which is likely to positively impact the SPY ETF in the short term.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80