Stock indices closed in the red today following cautious commentary from Federal Reserve officials. The Nasdaq 100, S&P 500, and Dow Jones Industrial Average all fell by over 1%, reflecting concerns about inflation and interest rate cuts.
Minneapolis Fed President Neel Kashkari emphasized the need for inflation to decrease further before considering rate cuts, while Cleveland Fed President Loretta Mester and Chicago Fed President Austan Goolsbee echoed this sentiment. This cautious approach to monetary policy is closely tied to inflation trends.
The Atlanta Federal Reserve revised its GDPNow reading, estimating first-quarter GDP growth at 2.5%, lower than the previous estimate of 2.8%. Additionally, the Department of Labor reported worse-than-expected Initial Jobless Claims, with 221,000 individuals filing for unemployment insurance.
On a more positive note, U.S. futures edged higher on Thursday morning after remarks from Fed Chairman Jerome Powell. Powell stated that evidence of inflation nearing the 2% target is needed before considering a rate cut in June, leading to a decrease in expectations for a rate cut during the June FOMC meeting.
Investors are now awaiting key economic data, including the Initial Jobless Claims report and corporate earnings from companies like Lamb Weston, Simply Good Foods, and Lindsay. The U.S. 10-year treasury yield was up, while WTI crude oil futures trended lower.
In Asia-Pacific markets, indices ended higher as investors digested Powell’s comments and retail sales figures from Hong Kong. Japan’s Nikkei and Topix indices saw gains, while Hong Kong and China markets were closed for a public holiday.
Overall, today’s market movements reflect a cautious approach to monetary policy and a focus on economic data as investors navigate uncertainty in the global economy.
