interest rate

Tech optimism hasn’t worn out yet, with the Nasdaq futures pointing to a strong start for these stocks, while the Dow and S&P 500 futures were modestly lower. Sentiment going into the session will largely hinge on the retail sales report that is due ahead of the market open and a slew of...

Mohamed El-Erian, the chief economic adviser at Allianz, has urged the Federal Reserve to initiate interest rate cuts to prevent potential economic instability. What Happened: El-Erian, in an opinion piece for the Financial Times, emphasized the need for the Fed to act swiftly in reducing interest...

Federal Reserve Chair Jerome Powell reiterated during his June press conference that policymakers “want to gain further confidence” on inflation before considering interest rate cuts, slightly dampening market enthusiasm fueled by a lower-than-expected inflation report released earlier...

May’s inflation report was cooler than economists had predicted, boosting confidence in the Federal Reserve’s ability to steer the annual price index variation back toward its 2% target. The headline inflation rate decelerated to 3.3% year-over-year in May 2024, down from the previous...

For the first time since June 2020, the Consumer Price Index (CPI) report will be released on the same day as the Federal Open Market Committee (FOMC) meeting. This sets up a potentially volatile Wednesday for financial markets. Following three consecutive months of higher-than-expected inflation...

The Federal Reserve is poised to keep the federal funds rate at 5.25%-5.5% for the seventh consecutive meeting in June, likely emphasizing that more time is needed to be confident that inflation will hit its target before contemplating any rate cuts. The key focus for market participants will be on...

The stock market extended its bull market rally for another week, with fresh record highs for both the S&P 500 and the tech-heavy Nasdaq 100 indices. The tech sector – particularly the chipmaker industry, as tracked by the iShares Semiconductor ETF (NYSE:SOXX), led broader market gains, driven...

The two interest rate cuts delivered this week by the Bank of Canada (BoC) and the European Central Bank (ECB) likely marked the beginning of a phase of policy easing among major central banks. On Wednesday, the BoC reduced its policy rate by 25 basis points to 4.75%, citing that “monetary...

With the Bank of Canada and the European Central Bank becoming the first two G7 central banks to go ahead with rate cuts, traders’ eyes are now firmly on the U.S. Federal Reserve. According to economist Mohmad El-Erian, it is only right that the U.S. central bank starts cutting rates sooner...

Long-dated U.S. Treasuries are rallying, breaking above a key downtrend that began in late 2023, fueled by recent soft economic data, which has led investors to reprice higher expectations on the Federal Reserve cutting interest rates in September. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT...

Editor’s note: This story has been updated to correct the spelling of economist Joseph Brusuelas’ name. The Personal Consumption Expenditure (PCE) price index, a preferred inflation gauge for the Federal Reserve, revealed a steady trend in April, aligning with economist expectations...

Markets experienced a sharp downturn Thursday afternoon following an initial surge to historic highs in technology-heavy stock indices, driven by Nvidia Corp.‘s (NASDAQ:NVDA) spectacular AI-driven earnings report. The CBOE Volatility Index (VIX), also known as the market fear index, surged...

The minutes from the May Federal Open Market Committee (FOMC) meeting delivered a harsh reality check to investors, countering the dovish signals earlier conveyed by Fed Chair Jerome Powell during the May press conference. Three key messages reignited investor fears about the increasing likelihood...

Federal Reserve Chair Jerome Powell on Tuesday warned of rates remaining higher for longer but qualified the April producer price inflation report as mixed. More importantly, he reassured the next rate move will unlikely be upward. Economist Peter Schiff, an inflation...

The producer price inflation report released on Tuesday stirred worries concerning a hot consumer price inflation print, which weighed down on the market in early trading. An economist, however, pointed to a data point that could allay concerns about pricing pressure. What Happened: The results of...