Volatility returned on Monday and bond yields soared as market participants adjusted their bets on when the Federal Reserve will begin cutting Interest rates . Last week's explosion jobs report as well as upcoming inflation data and scheduled comments from Fed policymakers, made for a choppy session.
He March employment report released last week "eclipsed all expectations," notes Deutsche Bank, adding to evidence that the Federal Open Market Committee (FOMC) does not need to rush to cut interest rates.
"While the strength of employment in March and the recent reacceleration of labor income growth reinforce the lack of urgency for Fed officials to begin normalizing rates, the improving labor supply narrative that Chairman Powell has emphasized recently remains well supported by the latest data," wrote Brett Ryan, senior U.S. economist at German bank
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Data of the Bureau of Labor Statistics unemployment The interest rate fell from 3.9% to 3.8%.
One positive data point that helped support calls for the Federal Reserve to begin cutting rates was that average hourly earnings โ a measure of inflation wages It was faster than the 0.1% increase seen in February.
The yield on the benchmark 10-year Treasury note soared to a high of 2024 on Monday as markets adjusted to the possibility of rates staying high longer. As of April 8, futures traders assigned a 51% probability to the first quarter-point rate cut coming in June, up from 57% a week ago, according to the CME Group report. FedWatch Tool
At the close of Monday, the Dow Jones Industrial Average S&P 500 fell 0.4% to 5,202, and the Nasdaq Compound
CPI and earnings season are underway
Looking ahead, there are a few things investors will be paying close attention to throughout the day. One is oil prices. Crude oil futures are up nearly 22% so far this year, which "threatens the 'inflation is falling' narrative and has raised expectations," says Liz Young, head of investment strategy at SoFi .
Inflation will be front and center economic calendar
And finally earnings season arrives. While this week earnings schedule JPMorgan Chase JPM ), marks the start of the first quarter reporting season.
Telsa jumps into robotaxi news
In individual stock news, tesla TSLA ) gained 4.9% after CEO Elon Musk said the electric vehicle (EV) maker would debut a robotaxi on August 8. Telsa shares gained about $25 billion in market value on the news.
Monday's TSLA rally followed Friday's fade, which was precipitated by a Reuters report a post on X
Tesla falls on low-cost car reports
tesla (TSLA ), for its part, fell 3.6% after a Reuters report
The company has yet to formally comment on the speculation, although in a post on X Elon Musk wrote "Reuters lies (again)."
CPI and earnings season are underway
Looking ahead, there are a few things investors will be paying close attention to next week. One is oil prices. Crude oil futures are up nearly 22% so far this year, which "threatens the 'inflation is falling' narrative and has raised expectations," he says young liz
Inflation will be the center of attention in the coming week economic calendar
And finally earnings season arrives. While next week earnings schedule JPMorgan Chase (JPM ), marks the start of the first quarter reporting season.
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