"The data is coming in strong and it is leading people to price out the 'Armageddon-recession' scenario that everyone was expecting at the start of the year, but I'm not sure one CPI and one retail sales print is enough for everyone to think all is fine and dandy with the economy once more," said Brown. In currencies, the dollar index was up 0.15% at 103.95, after earlier hitting a six-week high of 104.24.īut TraderX strategist Michael Brown said it was too soon to conclude that the economy would stay strong. 30 as investors bet that the Fed would hike rates higher for longer to tackle inflation.īenchmark 10-year notes were last up 5.4 basis points to 3.861%, from 3.807% late on Wednesday. In Treasuries after the data, 10-year yields touched their highest level since Dec. MSCI's gauge of stocks across the globe shed 0.72% on the day but was still up 7.1% so far for 2023. The Dow Jones Industrial Average fell 431.2 points, or 1.26%, to 33,696.85, the S&P 500 lost 57.19 points, or 1.38%, to 4,090.41, and the Nasdaq Composite dropped 214.76 points, or 1.78%, to 11,855.83.Īfter Thursday's sell-off the Dow was still up 1.7% year-to-date while S&P was still up 6.5% and Nasdaq was up 13.3% so far in 2023. "If that's the case the need for additional rate hikes and higher rates for longer is causing people to take some money out of the market, especially since the first six weeks of the year have been pretty strong." "It looks like inflation is a little stickier than a lot of us had hoped," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. On Tuesday, data showed US consumer prices accelerated in January. On Wednesday, a report showed US retail sales increased in January by the most in nearly two years. "With the strong data we've had it gets people concerned the Fed is behind the curve on inflation once again." Then 15 minutes later Meister came out and said she saw a compelling case for 50 basis points rate hike at the meeting earlier this month. "The PPI was the latest, the straw that broke the camel's back, making investors think we should be concerned. "We've had a trend of strong data," said Michael O’Rourke, chief market strategist at JonesTrading.
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