Inflation Data Tempers Bets on Imminent Fed Rate Cuts; Stocks, Bonds and Dollar Struggle to Find Direction
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Stocks, bonds, and the dollar struggled to find direction after hotter-than-expected inflation data tempered bets on imminent Fed rate cuts.
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Consumer price index rose more than forecast in December, increasing 0.3% from November and 3.4% from a year earlier. Core CPI rose 0.3% month-over-month and 3.9% year-over-year.
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Analysts said data suggests disinflation progress remains slow, meaning the Fed will likely delay rate cuts, pushing back against market expectations.
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Corporate highlights Hertz plans to sell a third of its EV fleet due to weak demand; Chesapeake Energy acquiring Southwestern Energy in $7.4 billion all-stock shale gas deal.
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Cryptocurrency-linked stocks extended gains after SEC approved Bitcoin spot ETFs in a "breakthrough" for the asset class.