Stock Futures Dip as NFP Data Shows Labor Market Still Hot
The reasons for the Federal Reserve to remain hawkish pile up as new jobs data report points to remarkable strength in the US economy.
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The US dollar index fell and stocks rose higher on Tuesday following a positive inflation report for October.
The reasons for the Federal Reserve to remain hawkish pile up as new jobs data report points to remarkable strength in the US economy.
Oil prices extended 10-month highs on Wednesday. Meanwhile, annual inflation rose higher-than-expected to 3.7% in August.
Expectations that the Fed will pause rate hikes after the latest CPI print stand at more than 90%, per the CME FedWatch tool.
According to fed futures data, there is a nearly 99% chance that the Fed will hike rates by 25 bps on July 26.
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June CPI report showed that inflation fell to 3% last month, while core CPI declined to 4.8%.
US producer price index fell to 1.1% in May, lower than the expected 1.5%.
The Fed is set to meet on June 14 and decide its next policy move.
The FDIC has also lent out $142.8 billion to two entities set up by US regulators to succeed SVB and Signature Bank.
Silicon Valley Bank and Signature Bank had the highest ratio of uninsured deposits, at 93.3% and 89.7%, respectively.
What can the Fed do in a sticky inflation situation?
BlackRock says the current macro environment is not suitable for a long-term bull market in stocks and bonds.