U.S. Inflation Data Takes Center Stage
The focus shifts to Tuesday’s release of U.S. inflation data for February, as markets eagerly await insights into the future trajectory of Federal Reserve monetary policy.
Key Figures and Expectations
Economists predict that the overall consumer price index (CPI) will hold steady at 3.1% on an annual basis, while the “core” CPI is forecasted to slow to 3.7% from January’s 3.9%.
Market Attention on Month-on-Month Gauge
Attention will likely be concentrated on the month-on-month gauge, with projections indicating a slight uptick to 0.4% for the headline number and a marginal deceleration to 0.3% for the core reading.
Fed’s Stance and Monetary Policy Outlook
Federal Reserve officials have emphasized the importance of cooling inflation, hinting at potential rate cuts later in the year. However, they emphasize the need for sustained evidence of price growth easing back to the 2% annualized target.
Market Dynamics and Performance
On Monday, the benchmark SPY and tech-heavy NASDAQ experienced declines, led by semiconductor stocks such as Nvidia and Advanced Micro Devices, as investors locked in profits ahead of the inflation data release.
Market Highlights
Despite the overall decline, the DJIA managed to rise by 0.1%, with Oracle emerging as one of the top performers in extended hours trading, surging nearly 14% on stronger-than-expected quarterly earnings driven by increased demand for its AI offerings.
Oracle’s Positive Quarterly Results
Oracle reported a 16% jump in profit per-share excluding items, surpassing Bloomberg consensus estimates, and announced plans for a joint announcement with Nvidia, highlighting the significance of AI-optimized chips for its cloud service customers.
Oil
Oil prices inched up on Tuesday, but gains were limited as traders remained largely cautious before the U.S. inflation data and looked ahead to an upcoming monthly report from the OPEC oil group.
Crude prices have been largely rangebound in recent sessions amid conflicting signals on demand and supply. Brent and WTI futures have traded within the $85 a barrel to $75 a barrel range for the past three weeks.
Oil markets are assessing downbeat demand signals out of China, the world’s largest crude importer. Beijing set a middling growth target for 2024, and also offered scant insight into more stimulus measures. These concerns were partially offset by hopes for CRUDE demand, as several refiners in the country began increasing production after an extended break.
Markets were now awaiting a monthly report from the Organization of the Petroleum Exporting Countries for more cues on demand, especially after it said it will maintain its current pace of production cuts until end-June.
Meanwhile, few signs of deescalation in the Israel-Hamas war pointed to ongoing supply risks in the Middle East.
Oh, one homework assignment for you all this week….. take the amount in your trading account right now and calculate the compounded interest for 252 days at a daily rate of 2% on a starting amount of $200:
- In the first row, list the following columns: Day, Starting Amount, Daily Interest Rate (2%), and Ending Amount.
- In the “Day” column, list numbers from 1 to 252 to represent each day.
- In the “Starting Amount” column, input $200 for each row.
- In the “Daily Interest Rate” column, input 2% or 0.02.
- In the “Ending Amount” column, use the formula for compound interest: Ending Amount = Starting Amount * (1 + Daily Interest Rate)^Number of Days.
Here’s how the spreadsheet would look:
| Day | Starting Amount | Daily Interest Rate | Ending Amount |
|---|---|---|---|
| 1 | $200 | 0.02 | [Formula] |
| 2 | $200 | 0.02 | [Formula] |
| … | … | … | … |
| 252 | $200 | 0.02 | [Formula] |
For the “Ending Amount” formula, you’ll use the formula for compound interest:
Ending Amount = Starting Amount * (1 + Daily Interest Rate)^Number of Days
In Excel, the formula would be: =200 * (1 + 0.02)^252
You can copy this formula for each row in the “Ending Amount” column to calculate the compounded interest for each day.
The result will astound you and show just how powerful OP is! Stay Educated 🤓
If you want to get the plays of the day then signup for Gold, and get a FREE TRIALIf you want to get the plays of the day then signup for Gold, and get a FREE TRIAL
Responses