US Inflation Misses Estimates: Consumer Price Index Inches 3.2% Higher In July, Core CPI Slips to 4.7%, Easing Fed Hike Concerns
Portfolio Pulse from Piero Cingari
The US Consumer Price Index (CPI) rose 3.2% in July 2023, below the expected 3.3%, easing concerns about Federal Reserve interest rate hikes. Core inflation fell from 4.8% to 4.7% YoY. The Labor Department reported an increase in initial jobless claims for the week ending Aug. 5, from 227,000 to 248,000. The dollar and Treasury yields declined, while S&P 500 and Nasdaq 100 futures rose. The Invesco DB USD Index Bullish Fund ETF (UUP) and the SPDR S&P 500 ETF Trust (SPY) were directly affected.
August 10, 2023 | 12:47 pm
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POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) may see a positive impact as S&P 500 futures rose 0.2% following the inflation data announcement.
The lower-than-expected inflation data eased concerns about Fed rate hikes, which is generally positive for equities. As SPY tracks the S&P 500, it may rise in response to the news.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) fell 0.1% following the July CPI data announcement.
The lower-than-expected inflation data eased concerns about Fed rate hikes, which is generally negative for the dollar. As UUP tracks the dollar, it fell in response to the news.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80