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Following the Highest Inflation Statistics in Decades, Stock Futures Rise

Following the highest inflation statistics in decades, stock futures rise

In early morning trading on Wednesday, stock futures were higher as investors considered the latest inflation figures for March.

The Dow Jones Industrial Average rose to 155 points or 0.45% in futures trading. Futures on the S&P 500 jumped 0.55%, and the Nasdaq 100 climbed 0.75%.

According to Tuesday’s inflation data, consumer prices rose 8.5 percent in March from the previous year, the highest level since 1981, fueling fears of tighter monetary policy from the Federal Reserve. The core CPI increased by 0.3 percent, which was significantly less than expected.

“I believe inflation has peaked,” Guggenheim Partners Global Chief Investment Officer Scott Minerd said on Tuesday on CNBC’s “Closing Bell: Overtime.” “We’re on the verge of peaking if it doesn’t happen in March.”

The 10-year Treasury note reached a new three-year high of 2.82 percent before retreating to 2.727 percent.

The major averages ended Tuesday’s session negatively after gaining earlier in the day. The Dow Jones Industrial Average plunged 87.72 points to 34,220.36, or 0.26 percent. The S&P 500 Index plummeted 0.34 percent to 4,397.45, while the Nasdaq Composite Index fell 0.30 percent to 13,371.57.

Technology was also hit hard, with Microsoft and Meta both losing around 1% of their value. Nvidia and Advanced Micro Devices dropped 1.9 percent and 2.3 percent, respectively, extending a series of losses in the semiconductor industry. Seven sectors, led by financials, closed the day in the red.

Oil prices rose as China eased some Covid-19 restrictions, which might hurt consumption. Brent crude prices increased 6.26 percent to $104.64 per barrel, while West Texas Intermediate crude futures increased 6.69 percent to $100.60 per barrel. Marathon Oil and Occidental Petroleum both ended the day up 4.2 percent and 2.1 percent, respectively, as a result of the developments.

In the meantime, the dollar index increased 0.39 percent to 100.332, its highest level since May 2020. Gold gained 1.43 percent to $1,976.1 per ounce.

Investors anticipate the start of the earnings season, which begins on Wednesday with JPMorgan and Delta Airlines.

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