On Wednesday, global stocks slightly declined and Treasury yields dropped, with the dollar strengthening against major currencies ahead of crucial U.S. inflation data. The anticipated U.S. personal consumption expenditures price index for January is expected to show a 0.3% rise, potentially influencing Federal Reserve policy. Market expectations for Fed rate cuts have been adjusted to June from earlier predictions, following strong economic data.
U.S. stock indexes remain near record highs, supported by a robust earnings season, with Nvidia’s results sparking AI optimism. Despite inflation concerns, the market has shown resilience, buoyed by better-than-expected earnings.
This week’s economic data, including GDP estimates and jobless claims, will further inform Fed policy expectations. The MSCI global stock index dropped by 0.33%, and U.S. indices like the Dow Jones, S&P 500, and Nasdaq saw slight decreases. European stocks also fell modestly due to mixed earnings reports.
In currency markets, the dollar index rose to 103.94, with the dollar gaining against the euro and yen. Treasury yields decreased, with the 10-year note yield at 4.268% and the 2-year note yield at 4.6457%.
Bitcoin continued its rally, reaching $62,560, driven by interest in U.S. spot bitcoin ETFs. Gold prices edged up to $2,033.37 an ounce. Oil prices showed mixed results, with U.S. crude settling at $78.54 per barrel and Brent crude slightly up at $83.14 per barrel.
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