"Futures are trading mixed on Wednesday, after a rough day for technology stocks and the Nasdaq. The combination of the prospect of a longer struggle with Iran, and higher inflation, which soared to 3.8% annually, the highest since May 2023, while the core number, which is less food and energy, rose to 2.8%, all but assuring that the Federal Reserve will be forced to hold rates higher for longer. Despite outstanding first-quarter earnings results, which are all but over, the market is heavily overbought and likely could use a breather."
"The minute the bond market got a whiff of the inflation numbers, the selling came in fast and furious. Savvy traders knew right away that the potential for rate cuts had likely been pushed out to the end of the year, if at all. When the dust settled on Tuesday, the yield on the 30-year-long Treasury bond had jumped to 5.03% while the benchmark 10-year note ended trading at 4.46%."
"The energy complex saw prices shoot higher once again, as growing concerns over supply, the collapse of the peace negotiations, and an Iranian proposal that the President deemed as "stupid" all contributed to the ongoing melt-up. When trading closed, Brent Crude ended the session at $107.80, up 3.48%, while West Texas Intermediate was last seen up 4.37% at $102.40. Natural gas actually finished down 2.51% at $2.84."
"Gold also had a rough day after starting the week strong, but finished way off the lows of the day at $4,713, down 0.45%. ING's energy strategist predicted that turbulence in precious metals will likely continue in the near term, but they expect gold to reach $5,000 by the end of the year."
Futures trade mixed after a weak session for technology stocks and the Nasdaq. Inflation rose to 3.8% annually and core inflation increased to 2.8%, reinforcing expectations that the Federal Reserve will keep interest rates higher for longer. Markets also appear stretched after strong earnings results, with the Russell 2000 and Nasdaq declining on Tuesday while the Dow edged higher. Treasury yields jumped quickly after the inflation data, with the 30-year bond reaching 5.03% and the 10-year note ending at 4.46%. Oil prices surged amid supply concerns and renewed Iran-related tensions, while natural gas fell. Gold ended lower but is expected to trend higher toward $5,000 by year-end.
Read at 24/7 Wall St.
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