|
Producer price index (PPI) for final demand is expected to have
edged up 0.3% last month, according to economists polled by
Reuters, after increasing by an unrevised 0.2% in March.
The PPI is expected to increase by 2.2% in the 12 months through
April, after adding 2.1% in the prior month.
Sticky inflation and persistent labor market strength have
prompted financial markets and most economists to push back
expectations for an initial Fed interest rate cut.
Traders now see a 49.6% chance that the central bank will ease
rates by 25 basis points in September, according to the CME
FedWatch Tool, from 44% last month. That compared with
expectations for first rate cut as early as March at the start
of the year.
Still, stocks have rallied so far this year, with all three
major U.S. indexes hovering near fresh record highs, underpinned
by better-than-expected first-quarter earnings and hopes that
the Fed will cut rates some time this year.
Focus will be more on Wednesday's consumer price figures to help
assess whether the upside surprises in the first quarter were a
blip or a worrying trend.
Meanwhile, Fed Chair Jerome Powell is due to speak at 1400 GMT.
At 05:00 a.m. ET, Dow e-minis were up 11 points, or 0.03%, S&P
500 e-minis were up 1 points, or 0.02%, and Nasdaq 100 e-minis
were up 7.75 points, or 0.04%.
The U.S.-listed shares of Alibaba added 0.7% in premarket
trading ahead of results.
Meanwhile, U.S. President Joe Biden unveiled a bundle of steep
tariff increases on an array of Chinese imports including
electric vehicles, computer chips and medical products.
U.S.-listed shares of Chinese EV makers Li Auto and Xpeng slid
more than 2% each.
GameStop jumped 39.2%, set to extend its rally after flag bearer
Roaring Kitty posted on X.com for the first time in three years.
Other 2021 meme rally participants and highly shorted stocks
such as AMC Entertainment and Koss Corp rose 38.2% and 12.6%,
respectively.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by
Sriraj Kalluvila)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
