The Market News Today: March CPI Report to Shape Fed’s Rate Strategy

March CPI Report: Mixed Outlook on Inflation Moderation

The upcoming March CPI report is crucial in gauging inflation trends and influencing the Federal Reserve’s interest rate decisions. Expected to release on April 10 at 12:30 GMT, it forecasts a 0.3% monthly increase in overall consumer prices, slightly down from February’s 0.4%. However, annual inflation might rise to 3.4% from 3.2%. Core CPI, excluding volatile food and energy, is also projected to rise. Despite some disinflation in goods, elevated services prices persist, influencing the Fed’s cautious stance on rate cuts.

Stock Futures Up, Yields Stable Ahead of CPI Data

As investors await the pivotal March CPI report, stock futures and Treasury yields displayed cautious optimism on Wednesday morning. Dow, S&P 500, and Nasdaq futures saw modest gains, while the 10-year Treasury yield held steady at 4.3657% and the 2-year yield dipped slightly. The CPI data, expected to reveal a 0.3% monthly and 3.4% annual increase, plays a crucial role in shaping the Fed’s interest rate strategy, with markets currently anticipating a 42% chance of rate stability in June.

Intel Unveils Efficient Gaudi 3 AI Chip, Challenges Nvidia

Intel announced its new AI chip, Gaudi 3, set to rival Nvidia’s dominance in the AI chip market. Boasting twice the power efficiency and 1.5 times faster processing than Nvidia’s H100 GPU, Gaudi 3 offers versatile configurations. Targeting AI models like OpenAI’s Whisper and Stable Diffusion, Intel’s chip is set for third-quarter customer release, with partners like Dell and Hewlett Packard Enterprise. Gaudi 3, part of Intel’s push in a growing AI market, is built on a five-nanometer process, indicating advanced manufacturing techniques.

Delta Earnings Report Anticipated Amid Travel Sector Surge

Delta Air Lines, benefiting from strong global travel demand, is set to report its first-quarter fiscal 2024 earnings before Wednesday’s opening bell. With the stock up 36% over the past year, outpacing the S&P 500’s 27% rise, investors are eyeing Delta’s performance amid surging business and holiday travel. Analysts expect a Q1 profit of 35 cents per share on $12.55 billion revenue, up from last year’s figures. The focus will be on Delta’s domestic and international travel growth, booking pricing, and capacity.

Gold Steady Near Record Amid Inflation, Geopolitical Tensions

Gold prices remained stable on Wednesday, close to a record high set in the previous session, trading at $2,351.94 per ounce. This steadiness reflects a mix of emerging inflation risks and ongoing geopolitical tensions bolstering the metal’s safe-haven appeal. Factors such as central banks in emerging markets buying gold, volatility in the Chinese currency, and inflation concerns contribute to the trend. Investors are also anticipating the U.S. CPI report and Federal Reserve meeting minutes for further market direction.