Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
US open: Futures mixed following CPI reading
(Sharecast News) - Wall Street futures were mixed ahead of the bell on Wednesday after the S&P 500 closed at a fresh record high in the previous session. As of 1245 GMT, Dow Jones futures were up 0.05%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.06% and 0.26% lower, respectively.
The Dow closed 235.83 points higher on Tuesday as investors largely shrugged off an unexpected pick-up in inflation, holding on to hopes that the data won't derail the Federal Reserve's plans to soon start cutting interest rates.
According to the Department of Labor, headline consumer prices increased at a 0.4% month-on-month pace in February, which served to push the year-on-year rate of increase from 3.1% in January to 3.2%, despite economists' expectations for no change. Core CPI also rose, up by 0.4% month-on-month, while the annual rate inched lower to 3.8% from 3.9%, albeit still higher than the 3.7% expected by the market.
February's producer price index was slated for release on Thursday, with the two key pieces of inflation data marking some of the last major macro data points scheduled for release ahead of the Federal Reserve's next monetary policy meeting on 19 March.
Trade Nation's David Morrison said: "Yesterday's crucial inflation update, February's Consumer Price Index, showed numbers going in the wrong direction. The headline year-on-year CPI rose 3.2%. This was higher than expected, and above the +3.1% reading from January. Previously, January's numbers had disappointed, coming in above expectations although still showing an overall decline. That had caused a serious market disruption and a sharp sell-off in risk assets. It's worth noting that Headline CPI has shown no improvement since June last year when it dropped to +3.0% year-on-year. Yesterday we saw an initial knee-jerk sell-off before prices turned higher with the S&P 500 going on to close at a record high.
"It does sometimes happen that the market rallies after the release of an important number, even if it disappoints. It's a sign of relief as much as anything. But it also indicates that path of least resistance is up for now, as investors are not yet ready to call a top. As far as forecasts for the path and timing of Federal Reserve rate cuts are concerned, nothing really changed. The probability of no change at next week's meeting is now 99%, while there's now a 58% likelihood of a 25 basis point cut at the June meeting."
On the macro front, US mortgage applications increased by 7.1% in the week ended 8 March, according to the Mortgage Bankers Association of America, cooling off slightly from the prior week's 9.7% rise. Applications to buy a home advanced 4.7%, while those to refinance a home loan jumped 12.2%. Elsewhere, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased 18 basis points to 6.84% - the lowest level seen in five weeks.
In the corporate space, Dollar Tree shares were in the red before the open after posting disappointing quarterly earnings, while Tesla shares headed south on the back of a downgrade from analysts at Wells Fargo.
Reporting by Iain Gilbert at Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Doing Business with Fidelity | Diversity, Equity & Inclusion Reports | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.