Inflation Heats Up, But Economists Stand Firm On Fed Interest Rates: Dollar Gears Up To Break 6-Day Losing Streak
Portfolio Pulse from Piero Cingari
The US Consumer Price Index (CPI) rose by 3.7% YoY in September, surpassing the anticipated 3.6%. Despite this, economists largely believe that the Federal Reserve will maintain the current interest rates in November. The US dollar surged following the release of the CPI data, potentially breaking a six-day losing streak. Stocks headed lower, with the SPDR S&P 500 ETF Trust (SPY) trading slightly negative. The Energy Select Sector SPDR Fund (XLE) and the Technology Select Sector SPDR Fund (XLK) were up, while the Utilities Select Sector SPDR Fund (XLU) and the Consumer Staples Select Sector SPDR Fund (XLP) were down.
October 12, 2023 | 4:02 pm
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POSITIVE IMPACT
The Energy Select Sector SPDR Fund (XLE) was up 0.6% following the release of the CPI data.
The rise in XLE could be due to the potential impact of higher energy prices on inflation.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Technology Select Sector SPDR Fund (XLK) was up 0.8% following the release of the CPI data.
The rise in XLK could be due to the sector's resilience to inflationary pressures.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) traded slightly negative following the release of the CPI data.
The negative trading of SPY is likely due to the higher than expected inflation data, which could lead to uncertainty in the market.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Consumer Staples Select Sector SPDR Fund (XLP) was down 1.4% following the release of the CPI data.
The decline in XLP could be due to concerns over the impact of higher inflation on consumer spending.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Utilities Select Sector SPDR Fund (XLU) was down 1.4% following the release of the CPI data.
The decline in XLU could be due to concerns over the impact of higher inflation on utility costs.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80