LIVE MARKETS-S&P 500 futures pare losses slightly after CPI
Spdr Select Fund-Energy Select Sector XLE | 0.00 | |
Dow Jones Industrial Average DJI | 0.00 | |
CBOE Volatility Index | 0.00 | |
Spdr Select Sector Fund - Technology XLK | 0.00 | |
S&P 500 index SPX | 0.00 |
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S&P 500 FUTURES PARE LOSSES SLIGHTLY AFTER CPI
E-mini S&P 500 futures EScv1 are modestly red, but did pare losses after the release of the latest Consumer Price Index (CPI) data. The futures are now down around 0.25% versus a loss of around 0.4% just before the numbers came out.
April CPI on a month-over-month basis came in at 0.6% vs. a 0.6% estimate. The year-over-year print was 3.8% as compared to the 3.7% Reuters Poll. The core CPI on a month-over-month basis came in at 0.4% vs. a 0.3% estimate. On a year-over-year basis, the core reading came in at 2.8% versus the 2.7% Reuters Poll.
According to the CME's FedWatch Tool, the probability that the Fed leaves its current target rate of 3.50% to 3.75% unchanged at its June 16 to 17 FOMC meeting is unchanged at 98% versus just prior to the release of the data. The chance that the FOMC cuts rates by 25 basis points (bps) is 2%.
Looking further out into 2026, interest rate probabilities are now pricing in 8.3 bps of hikes through year-end versus around 10 bps just before the numbers were released.
The U.S. 10-Year Treasury Yield US10YT=RR is now around 4.43%. It was around 4.44% just before the numbers came out. The yield ended Monday at 4.412%.
A majority of S&P 500 sector SPDR ETFs are higher in premarket trading with energy XLE.P, up more than 1%, the biggest gainer. Tech XLK.P, down around 1%, is the weakest group.
The SPDR S&P regional banking ETF KRE.P is off around 0.2%.
Regarding the data, Adam Sarhan, chief executive of 50 Park Investments in New York, said:
"Right now inflation is high, and it's likely to stay high until oil prices come down."
He added, "That is a concern for the market and, more importantly, for the Fed."
Here is a premarket snapshot from around 8:53 a.m. EDT.
(Terence Gabriel, Caroline Valetkevitch)
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