US Inflation Data Prematurely Released By Accident, Yet Traders Missed Golden Opportunity
Portfolio Pulse from Piero Cingari
The U.S. Bureau of Labor Statistics accidentally released April's inflation data 30 minutes early, but traders failed to capitalize on the early release. Major indices like the S&P 500, Nasdaq 100, and Dow Jones Industrial Average surged after the official release time, with significant gains in rate-sensitive sectors. The Real Estate Select Sector SPDR Fund (XLRE) and iShares 20+ Year Treasury Bond ETF (TLT) saw notable increases, while Bitcoin experienced its best daily performance in nearly two months.
May 16, 2024 | 1:26 pm
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NEUTRAL IMPACT
BlackRock Inc. was mentioned in the context of scrutiny over BLS's data practices, but no direct impact on its stock price was noted.
BlackRock was mentioned in relation to concerns over equitable data access, but there was no direct impact on its stock price.
CONFIDENCE 70
IMPORTANCE 20
RELEVANCE 30
NEUTRAL IMPACT
JPMorgan Chase & Co. was mentioned in the context of scrutiny over BLS's data practices, but no direct impact on its stock price was noted.
JPMorgan was mentioned in relation to concerns over equitable data access, but there was no direct impact on its stock price.
CONFIDENCE 70
IMPORTANCE 20
RELEVANCE 30
POSITIVE IMPACT
Bitcoin surged 7.6% following the official release of inflation data, marking its best daily performance in nearly two months.
The speculative cryptocurrency market responded dramatically to the official inflation data release, leading to a significant increase in Bitcoin's price.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) rose 1.4% following the official release of inflation data.
The inflation data led to a drop in Treasury yields, which positively impacted long-dated Treasury bonds tracked by TLT.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The Real Estate Select Sector SPDR Fund (XLRE) soared 1.7% following the official release of inflation data, marking its strongest week since December 2023.
The inflation data aligned with forecasts, prompting traders to raise Fed rate cut expectations, which benefited rate-sensitive sectors like real estate.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80