US Macro: Fed Signals Limited Rate Hikes, CPI Incoming, Consumer Stocks Lagging
Fed officials signaled limited need for further rate hikes as yields declined ahead of CPI data. Consumer discretionary stocks are deeply lagging the S&P 500, which closed near flat for the session.
What we know
An account on X summarized the macro backdrop: Treasury yields declined as investors awaited US CPI, with higher gasoline expected to lift headline. Fed Governor Waller said elevated long-term yields are already weighing on housing and auto demand, potentially reducing the need for rate hikes. Another account on X relayed Fed's Collins expecting inflation above 2% due to high energy prices and data-center buildout, but expects gradual cooling to target. Equity close: S&P 500 -0.02% at 7,805.67, Nasdaq -0.17%, Dow -0.38%. Another account on X flagged a critical divergence: the Equal-Weight Consumer Discretionary ETF is down 8% YTD while the S&P 500 is up nearly 14%. Another account on X noted the Cleveland Fed nowcast points to core CPI +0.20% MoM, roughly in line with Wall Street's 0.21% estimate.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.