Tuesday saw a drop in US stock futures, moving away from recent highs as traders anticipated an important inflation report that would influence the decision to lower interest rates.
Inflation Dropped By 3%
Futures for the S&P 500 (^GSPC) fell 0.4% after the benchmark failed to maintain its historic climb above 5,000 on Monday. Futures on the tech-heavy Nasdaq 100 (^NDX) sank 0.6% to pace falls, while those on the Dow Jones Industrial Average (^DJI) lost 0.1%, losing ground on a record closing high.
With the release of the Consumer Price Index for January on Tuesday, investors got a first peek at inflation in 2024. It is anticipated that headline inflation dropped below 3% for the first time since March 2021 in the CPI report, a crucial source of information used by the Federal Reserve to determine its policies.
A lower number than anticipated would rekindle hopes for an early rate decrease this year, despite the fact that a slew of Fed officials have highlighted that they must be absolutely certain that inflation is declining before changing course.
Increase In Price
Source- Forbes
The price of bitcoin (BTC-USD) was trading at about $50,000 in other markets following the market leader’s astounding return to the level that was being widely followed for the first time since 2021.
In January, prices rose more than anticipated. In January, consumer prices rose more than anticipated. According to the January Consumer Price Index (CPI), prices increased marginally from December’s 0.2% to 0.3% over the previous month. Compared to the previous month, prices increased by 3.1%, which was less than the 3.4% increase.
