US stocks were reviewed, US CPI fell beyond expectations in March, and the minutes of the Fed meeting triggered concerns about a recession!
The minutes of the Fed meeting triggered recession concerns that US stocks collectively closed down
US stocks closed lower on Wednesday. The US CPI increased 5% year on year in March, hitting a two-year low and falling short of market expectations. The minutes of the Federal Reserve's March monetary policy meeting show that the agency expects the banking crisis to trigger a recession this year. By the close, $Dow Jones Industrial Average(.DJI.US$ Decreased by 0.11%, $Nasdaq Composite Index(.IXIC.US$ Decreased by 0.85%, $S&P 500 Index(.SPX.US$ Decreased by 0.41%.
Large technology stocks have generally declined. $Apple(AAPL.US$ Decreased by 0.44%, $Amazon(AMZN.US$ Decreased by 2.09%, $Meta Platforms(META.US$ Up 0.07%, $Alphabet-A(GOOGL.US$ Decreased by 0.67%, $Microsoft(MSFT.US$ Up 0.23%, $Tesla(TSLA.US$ Down 3.35%, $Netflix(NFLX.US$ Decreased by 2.12%, $NVIDIA(NVDA.US$ Decreased by 2.48%, $Micron Technology(MU.US$ Down 2.53%, $Intel(INTC.US$ Down 1.02%.
Important Market News
Federal Reserve Meeting Minutes: Interest rate hikes are still possible in May, and the economy is expected to decline during the year
The minutes of the Federal Reserve meeting showed that many Fed officials lowered their expectations for peak interest rates due to the banking crisis; several Fed officials emphasized the need to maintain policy flexibility; the decision to raise interest rates by 25 basis points in March was supported by all Fed officials; and the Federal Reserve staff expected the economy to begin a “moderate recession” in late 2023.
Despite the increased possibility of a recession, Fed officials suggest that interest rates may continue to be raised at the next meeting in May. The minutes write that in light of recent changes in the situation, FOMC members of the Federal Reserve's Monetary Policy Committee anticipate that it may be appropriate to increase some policy austerity in order to achieve a policy stance that is sufficiently restrictive on the economy, so that the inflation rate falls back to 2% over time.
The US CPI exceeded expectations in March and the inflationary pressure eased somewhat
On Wednesday EST, the US Bureau of Labor Statistics released data showing that the US recorded an unseasonally adjusted CPI annual rate of 5% in March, lower than the forecast of 5.2%, a new low since May 2021. However, the US recorded an annual rate of 5.6% of the core CPI without seasonal adjustments in March. The forecast was 5.6%. The previous value was 5.50%, ending five consecutive declines. After the March seasonal adjustment, the monthly CPI rate in the US recorded 0.1%, which is expected to be 0.20%, compared with the previous value of 0.40%.
Overall, the US inflation data has been slowing for the 9th month in a row, lower than the 9% high in June last year, but still far above the Fed's 2% target. According to the analysis, the US inflation rate fell to its lowest level in the past two years in March, but the rise in core CPI will continue to put pressure on the Fed, forcing it to raise interest rates again in May.
US President Joe Biden said the CPI data showed continued progress in fighting inflation.
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411-409.4-408.2-406.4-403.6
The points to be aware of during the QQQ day are 321-
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