US Inflation Falls As Expected In April, Bolsters Fed Rate Cut Bets (UPDATED)
Portfolio Pulse from Piero Cingari
US inflation data for April met expectations, breaking a three-month streak of higher-than-expected readings. This has bolstered hopes for a Federal Reserve rate cut. The Consumer Price Index (CPI) showed a year-over-year increase of 3.4%, while core CPI inflation eased to 3.6%. Market reactions included a drop in Treasury yields, a weakening US dollar, and gains in stock futures, with the Nasdaq 100 index closing at an all-time high.
May 15, 2024 | 12:38 pm
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NEGATIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) weakened by 0.5% following the April inflation report, as the US dollar index dropped.
The April inflation report met expectations, leading to a drop in the US dollar index, which directly impacts the UUP ETF. This is likely to result in a short-term decline in UUP's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) saw gains as the Nasdaq 100 index closed at an all-time high following the April inflation report.
The April inflation report met expectations, leading to gains in stock futures and the Nasdaq 100 index closing at an all-time high. This is likely to result in a short-term increase in QQQ's price.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 90