US stocks rise on CPI surprise

U.S. stocks extended their gains on Tuesday after key inflation data were higher than expected, raising hopes of when the Federal Reserve will cut interest rates.

The S&P 500 (^GSPC) rose 0.5%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose about 0.7% after two days of losses. The Dow Jones Industrial Average (^DJI) rose about 0.3%.

Investors are digesting the announcement of the consumer price index. This is one of the most important data inputs for the Fed in determining its next policy move. The headline inflation rate met expectations with a monthly increase of 0.4% in February, following an increase of 0.3% in the previous month. However, the “core” CPI, which excludes food and energy prices, rose 0.4% from the previous month and rose 3.1% annually, both higher than expected.

Changes in the CPI are seen as influential because Fed policymakers have said they want to make sure inflation is easing before they start lowering interest rates from historically high levels. Before the CPI release, S&P 500 traders were hedging against a 0.9% move in either direction.

Meanwhile, Bitcoin (BTC-USD) continued its record rally, surpassing $72,200. A surge in inflows into crypto assets has seen the major token rise nearly 70% so far this year, with bulls predicting Bitcoin could reach $350,000 this year.

On the corporate side, shares of database giant Oracle (ORCL) rose 12% in early trading on signs of progress in cloud computing, backed by a partnership with AI chip giant Nvidia (NVDA).

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Tuesday, March 12, 2024 6:35 a.m. (Pacific Daylight Time)

Stocks start higher despite positive inflation statistics

Markets rallied heading into Tuesday's open despite higher-than-expected inflation in February.

The S&P 500 (^GSPC) rose 0.5%, and the tech-heavy Nasdaq Composite Index (^IXIC) rose about 0.7% after two days of losses. The Dow Jones Industrial Average (^DJI) rose about 0.3%.
Tuesday, March 12, 2024 5:33 a.m. PDT

Inflation remains high

Inflationary pressures continued in February as shelter and gasoline prices rose, according to the latest Bureau of Labor Statistics data released Tuesday morning.

The consumer price index (CPI) in February increased by 0.4% month-on-month and 3.2% year-on-year, slightly higher than January's 0.3% month-on-month increase and 3.1% annualized increase. .

Both indicators were up 0.4% from the previous month, broadly in line with economists' expectations for an annualized increase of 3.1%, according to Bloomberg data.

On a “core” basis, which excludes volatile food and gas prices, prices in February rose 0.4% from the previous month and 3.8% from a year earlier. Both indicators exceeded economists' expectations for an increase of 0.3% from the previous month and an annualized increase of 3.7%.

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Tuesday, March 12, 2024 4:30 a.m. (Pacific Daylight Time)

3 reasons why Apple stock is sucking wind

Apple (AAPL) stock has looked a little less sweet over the past month.

The tech company's stock fell 8.5%, lagging the S&P 500's 1.8% rise. Experts point to disappointment that Apple has not yet revealed its AI plans as the main reason for the stock's slump. Concerns about the pace of Chinese demand also haven't helped sentiment.

But there could be more going on here, EvercoreISI technology analyst Amit Daryanani points out in a new note to clients this morning.

Daryanani gave three reasons behind selling Apple:

“We have answered numerous questions from investors about what can help unlock upside and regain momentum in stocks. Overall, we believe the following: thinking about. three things That's the reason for AAPL's “poor performance” in recent weeks – 1) Risk on + Skew to Nvidia/AI: This is often asked by investors who want to overweight “AI” names like Nvidia (NVDA), especially on the mega-cap side. Doing so will make it easier to steal funds from AAPL. 2) China concerns – Data sets continue to suggest that demand in China is generally weak, with Apple likely ceding some market share in smartphones. 3) Regulatory concerns – which continues to hinder Apple’s comfort surroundings. In particular, we hear concerns about the impact on the Department of Justice/Google and EU antitrust issues. ”