Markets React to U.S. Economic Indicators as Fed Policy Uncertainty Looms

U.S. stock indexes fell amid rising 10-year Treasury yields and a two-year high for the U.S. dollar index. Investors are awaiting a Consumer Price Index report that could influence Federal Reserve interest rate policy. Economic data, including a strong jobs report, also contributed to speculation over potential inflation.


Devdiscourse News Desk | Updated: 14-01-2025 01:59 IST | Created: 14-01-2025 01:59 IST
Markets React to U.S. Economic Indicators as Fed Policy Uncertainty Looms
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U.S. stock markets experienced declines on Monday as the dollar reached its highest point in over two years, driven by stronger-than-anticipated jobs data that has investors speculating that the Federal Reserve may halt further interest rate reductions.

All eyes are now on Wednesday's upcoming Consumer Price Index report, which may shed light on whether rate cutting is truly over. Economists predict a 2.9% annual rise, higher than November's 2.7%, accompanied by a 0.3% monthly increase.

Amidst this uncertainty, statements from economists like Peter Cardillo have amplified concerns of an interest rate cut pause. Additionally, global and domestic stock indices are mixed, with significant movements in the Dow, S&P 500, and Nasdaq, as well as energy and dollar markets showing volatility.

(With inputs from agencies.)

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