Inflation Fears Rattle Markets: U.S. CPI Surge Dims Rate Cut Hopes

February 13, 2024
Inflation Fears Rattle Markets: U.S. CPI Surge Dims Rate Cut Hopes
  • U.S. stock market plunged Tuesday following January's consumer inflation data indicating a 3.1% annual increase.

  • Consumer prices rose more than expected, with a 0.3% rise from the previous month, led by shelter costs and other services.

  • Persistent inflation trends, as shown by the supercore CPI measure reacceleration, dampened hopes for an imminent Fed rate cut.

  • Investor confidence waned, reducing the likelihood of a May rate cut from nearly 50% to 31.6%.

  • Global markets reacted with the U.S. dollar strengthening and the Canadian dollar experiencing its most significant drop in 11 months.

  • NVIDIA Corporation received a price target upgrade amid strong AI demand, with market watchers anticipating its upcoming earnings report.

Summary based on 38 sources


Get a daily email with more Macroeconomics stories

Sources

More Stories