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Stock Market Today: Us Stocks Slip As Investors Brace For Big March Inflation Report

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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 5, 2020.

Andrew Kelly/Reuters

  • US stocks sold off on Tuesday as investors brace for the March CPI inflation report.
  • The inflation report will help set the narrative about future interest rate cuts from the Federal Reserve.
  • After the CPI report, investors will turn their attention to the start of first quarter earnings results.

US stocks slipped on Tuesday as investors brace for the Wednesday morning release of the March CPI report.

The March consumer price index report is set to be released Wednesday morning, and investors expect a continued decline in inflation. Current estimates suggest year-over-year core CPI will drop to 3.7% compared to the previous reading of 3.8%, while month-over-month Core CPI is expected to drop to 0.3% compared to the prior reading of 0.4%.

Any acceleration in inflation will significantly raise the risk that interest rate cuts from the Federal Reserve are pushed back, and that could have negative implications for stock prices, according to JPMorgan. The bank previewed two other scenarios depending on what the CPI report looks like. 

"Tomorrow's March CPI report will be paramount," Macquarie strategist Thierry Wizman said. 

After the release of the CPI report, investors will turn their attention to the start of first quarter earnings results, with JPMorgan and Wells Fargo set to kick off earnings season before the market opens on Friday. 

Here's where US indexes stood at the 4:00 p.m. closing bell on Tuesday: 

Here's what else happened today: 

In commodities, bonds, and crypto: 

  • West Texas Intermediate crude oil dropped by 1.32% to $85.29 a barrel. Brent crude, the international benchmark, slipped 1.01% to $89.47 a barrel. 
  • Gold jumped 0.68% to $2,367.00 per ounce. 
  • The 10-year Treasury yield fell six basis points to 4.367%. 
  • Bitcoin dropped by 3.86% to $68,865. 
Read the original article on Business Insider


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