It was another negative day for US stock markets with all three benchmarks finishing 0.3% lower after another record inflation print.
According to reports, US consumer inflation rose 1.2% in March taking the annual rate to 8.5%, the highest since 1982.
But there were positive signs in the core print which excludes more volatile items, which finished ‘just’ 6.5% higher with many now suggesting a peak may have been reached. That is what the yield curve suggests at least after bond yields retreated on the news.
The major banks including JP Morgan (NYSE: JPM) all fell by more than 1% ahead of the beginning of an incredibly important but likely volatile reporting season.
Looking more closely at the inflation data and positive signs emerge, with used car and some other goods seeing price falls, but new car prices continuing to rise.
Goods inflation rose 8.1% whilst household furnishing gained just 1% due primarily to the high comparables in the prior month.
In positive signs, President Biden continues to seek alternative sources of fuel, releasing higher ethanol product in an attempt to dampen prices.
US stock market movers
Here’s how popular US stocks performed on Tuesday.
- CrowdStrike (NASDAQ: CRWD) up 3.2%
- Coca-Cola (NYSE: KO) up 1.2%
- Apple (NASDAQ: AAPL) up 1.2%
- Etsy (NASDAQ: ETSY) down 3.6%
- Shopify (NYSE: SHOP) down 4.3%
- Twitter (NYSE: TWTR) down 5.4%
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is expected to edge lower when the market opens this morning. For a round-up of the latest news, check out my ASX 200 morning report.
