(Reuters) - U.S. stock index futures are on the rise as investors eagerly await the latest inflation data that could impact the Federal Reserve’s monetary policy decisions for the year.
Recent strong economic indicators and solid inflation figures have tempered expectations of aggressive rate cuts by the central bank.
All eyes are now on the March U.S. Consumer Price Index (CPI) report, with forecasts suggesting a slight uptick in headline inflation to 3.4% year-on-year from February’s 3.2%.
The core CPI, which excludes volatile elements like food and energy, is expected to dip to 3.7% year-on-year compared to 3.8% in February.
Market sentiment indicates a reduced expectation of rate cuts by the Fed, with a 67-basis-point decrease priced in, down from the 150 bps projected earlier this year.
Despite this, there is still a 54% probability of a minimum 25 bps cut in June, according to the CME’s FedWatch Tool, a slight decrease from last week’s over 60% likelihood.
Stay tuned for more updates…
2024-04-10 05:17:38
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