Nasdaq 100, Dow Jones, S&P 500: Higher on Positive Inflation Report, Triton Acquisition Deal

Highlights

• Lower-than-anticipated increase in consumer prices for March
• Triton International shares surge by 30% following Brookfield Infrastructure acquisition deal
• Federal Reserve meeting minutes and Q1 earnings season in focus

Overview

The major U.S. stock indexes are trading higher shortly after the cash market opening, but off their earlier highs.

During the pre-market session, stock index futures jumped. The driving force was a key inflation report. It showed a lower-than-anticipated increase in consumer prices for March.

At 14:00 GMT, the blue chip Dow Jones Industrial Average is trading 33858.57, up 173.78 or +0.52%. The benchmark S&P 500 Index is at 4124.59, up 15.85 or +0.38% and the tech-weighted NASDAQ Composite is at 12050.77, up 18.89 or +0.16%.

March CPI Rises Less Than Expected, Impact on Fed’s Rate Decision

On Wednesday, a U.S. government report showed that in March, the consumer price index (CPI) increased by 0.1%, which was lower than the anticipated 0.2% increase predicted by economists surveyed by Dow Jones.

This report may influence the Federal Reserve’s decision on interest rates in May and could further support the argument to halt the central bank’s rate-hiking measures, despite the year-over-year CPI increase of 5%.

Investors are likely to view the current decrease in inflation positively and speculate that the Fed may pause its monetary tightening policies soon. However, despite the decline in the inflation rate, it still exceeds the Fed’s target of 2%.

Triton’s Shares Jump 30% Following Brookfield Infrastructure Acquisition Deal

Triton International shares surged by 30% during premarket trading following the announcement of a takeover deal with Brookfield Infrastructure Partners in a take-private transaction. The shipping container company’s equity will be valued at over $4 billion, with an enterprise value of $13.3 billion.

Brookfield’s acquisition of Triton comes amid a lackluster year for mergers and acquisitions in 2022, although there are indications that the market may recover this year. For example, a recent report by the Wall Street Journal suggests that Exxon Mobil is exploring potential acquisition targets.

Federal Reserve Meeting Minutes and Q1 Earnings Season in Focus

Later today at 18:00 GMT, Minutes from the March Fed meeting will try to explain the rationale behind the 25 basis point increase.

First-quarter earnings season will test US economy and consumer health with major players reporting. This includes: JPMorgan Chase, Wells Fargo, Citigroup, and UnitedHealth in the banking and healthcare sectors, respectively.

Stock Market Rises on Positive Inflation Report and Triton Acquisition Deal

Based on the current market conditions and recent news, it is likely that the U.S. stock market will continue to trade higher today, but potentially off earlier highs.

The upcoming Federal Reserve meeting minutes and Q1 earnings season will be closely watched. Investors will try to gauge the health of the economy and consumer.