Stock market today: Rally takes a breather as investors assess Fed comments and await inflation data
Fed President Austan Goolsbee said he expects the central bank to cut interest rates three times in 2024, reiterating the view from the FOMC last week.
Bryan R Smith
- US stocks sold off on Monday as investors await further commentary from the Fed and inflation data.
- February core PCE and personal spending data will be released on Friday.
- Fed President Austan Goolsbee said he expects three interest rate cuts in 2024.
US stocks sold off on Monday as investors await further commentary from the Federal Reserve and more inflation data.
Fed President Austan Goolsbee said he expects the central bank to cut interest rates three times in 2024, which is in-line with current market expectations.
"We're in an uncertain state but it doesn't feel to me like we've changed fundamentally the story that we're getting back to target," Goolsbee said on Monday.
Meanwhile, Fed President Raphael Bostic said he expects only one rate cut this year.
"As long as the economy is strong, as long as GDP is high, as long as businesses are hiring and folks have jobs, I'm not in a hurry to get inflation down to 2%," Bostic said on Monday.
Fed Governor Christopher Waller and Fed Chairman Jerome Powell will speak later this week, and investors will continue to listen for any clues from the Fed members as to when the central bank may consider cutting interest rates.
Meanwhile, more inflation data is scheduled to be released on Friday, with the February core PCE Index. The median forecasts suggest core PCE will rise 2.8% year-over-year, which is in-line with the previous reading. Investors will be unable to react to the data until next week, as the stock market is closed on Friday in observance of Good Friday.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:
- S&P 500: 5,218.22, down 0.3%
- Dow Jones Industrial Average: 39,313.77, down 0.41% (-162.13 points)
- Nasdaq Composite: 16,384.47, down 0.27%
Here's what else is going on today:
- Boeing CEO Dave Calhoun will step down from the company at the end of the year. Calhoun's resignation comes amid an ongoing safety saga for the plane manufacturer. Boeing stock jumped on the news.
- JPMorgan initiated coverage on Super Micro Computer with an "Overweight" rating and set a $1,150 price target for the AI stock.
- The AI boom in the stock market could make it difficult for the Fed to cut interest rates, a top economist said.
- Bank of America said stocks could rise another 34% by 2026, and the bull market could last until 2033.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil jumped 1.77% to $82.06 a barrel. Brent crude, the international benchmark, climbed by 1.59% to $86.79 a barrel.
- Gold rose by 0.65% to $2,174.00 per ounce.
- The 10-year Treasury yield rose 5 basis points to 4.26%.
- Bitcoin surged 5.43% to $70,858.