"Futures are trading lower as investors and traders return from the three-day holiday break, after a wild week that saw just about everything. The catalyst on Friday was that the January consumer price index data came in below estimates at 2.4%. While anyone buying beef recently would dispute that inflation is lower, the trend is in the right direction, which could pave the way for additional rate cuts, though perhaps not until the summer. The Dow Jones Industrials closed at 49,500, up 0.10%, and the S&P 500 finished at 6,836, up just 0.05%."
"Yields were mostly lower across the Treasury curve as the surprising CPI report provided some much-needed support for the narrative that the Fed will cut rates. Kevin Warsh, who is likely to be the next Fed Chairman, has been notably inflation-sensitive when it comes to policy, so the report on Friday lends a hand. One thing is for sure: Mr. Warsh will likely need a few months of headline inflation and a lower core rate like January before another cut."
Futures trade lower after a three-day holiday and a volatile week as January CPI fell to 2.4%, below estimates. Softer CPI could allow Federal Reserve rate cuts possibly by summer, though several months of lower headline and core inflation are likely needed. Equities were mixed: Dow 49,500 (+0.10%), S&P 6,836 (+0.05%), Nasdaq 22,546 (-0.22%), Russell 2000 2,646 (+1.18%). Treasury yields slid—30-year 4.69%, 10-year about 4.05%—as the CPI supported the rate-cut narrative. Energy remained volatile (Brent $67.68, WTI $62.89, nat gas $3.24), OPEC+ talks raised oversupply concerns, and gold bounced Friday.
Read at 24/7 Wall St.
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