Wall Street is trading with moderate falls this Monday after the mixed sign on Thursday and after ending a month of March already a bullish first quarter of the yearwhich allowed the S&P 500 record its best start to the year since 2019. On Friday, with the market closed for Good Friday, the PCE consumption deflator February, the preferred inflation measure of the Federal Reserve (Fed)a fact that investors discount in this session, just like the words of Jerome Powellwho insisted that «we don't need to be in a hurry to cut back» interest rates. The PCE inflation It stood at 2.5%, slightly above the 2.4% in January, and in line with the consensus estimate. The underlying variable, for its part, moderated slightly to 2.8% from 2.9% the previous month, and also in line with estimates. «The bad news –for inflation– is that personal spending increased more than expected in February, but the good news is – for inflation – that personal income fell faster than expectations,» assesses Ipek Ozkardeskaya, senior analyst at Swissquote Bank. According to Bankinter experts, this indicator gave «new signs that the last mile in fighting inflation will be the most difficult to overcome. The price level remains anchored around +3% and invites us to think about a Fed that continues to insist on gaining more confidence in the good evolution of inflation. delaying the start of the rate cut cycle«.» «The fact that the American economy is growing at such a strong pace, and that the labor market is still very, very strong, gives the Fed a chance to have a little more confidence that inflation will come down before cutting rates«Adds Ozkardeskaya.
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Behind the PCE publication, and the fact that The US economy is growing at a solid pacehas led strategists to wait, with a 68% probability, according to the CME Group's FedWatch tool, which the first rate drop arrives in June. However, the next macro data that is known will be decisive in anchoring this expectation, therefore, the official employment report, which will be known on Friday, will be decisive. Likewise, this Tuesday the Job Offers and Labor Turnover Survey (JOLTS)while on Wednesday it will be the turn of the ADP employment data and on Thursday the weekly unemployment claims. The economic agenda also includes other notable references such as the PMI and ISM manufacturing, which this Monday has shown the improvement of the sector until entering expansive territory after 16 months of contraction, and the PMI and ISM services (Wednesday).
COMPANIES AND OTHER MARKETS
At the business level, tesla ha uploaded at $1,000 the price of his Model Y in the United States from this April 1st. In recent weeks, the electric vehicle manufacturer also raised the prices of its cars in Europe by around 2,000 euros. For its part, Microsoft will sell its 'Teams' chat and video application separately from its Office product globally, as it already decided to do in Europe to comply with community antitrust rules. Besides, Micron Technology shares rise 4% after Bank of America raised the firm's price target to $144 per share, from $120 previously. In other markets, oil West Texas rises 0.19% ($83.31) and the Brent earn 0.06% ($87.04). For his part, the euro depreciates 0.12% ($1.0778), and the ounce of gold earn 1.74% ($2,277). Besides, the 10-year American bond yield is revalued to 4.268% and the bitcoin gives 1.37% ($70,067).