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U.S. stocks rise as economic data ease rate hike worries

Published 14/04/2023, 12:24 am
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By Liz Moyer

Investing.com -- U.S. stocks were rising after more data showed inflation is cooling, easing fears about Federal Reserve interest rate increases.

At 10:10 ET (14:10 GMT) the Dow Jones Industrial Average was up 21 points or 0.1%, while the S&P 500 was up 0.4% and the NASDAQ Composite was up 1.1%.

Producer prices were weaker than expected for March, and jobless claims edged above expectations. That could ease fears about the Fed taking an aggressive stance on interest rates when it meets in early May.

The Labor Department said producer prices rose 2.7% in the year through March, versus expectations for a 3% increase. Jobless claims came in at 239,000 last week, versus expectations for 232,000.

On Wednesday, the consumer price index for March was also cooler than expected. And the Fed released the minutes of its meeting in March, when policy makers raised concerns about a recession after last month’s turmoil in the banking sector. 

Futures traders are now betting that the Fed will raise rates by a quarter of a percentage point in May.

On Friday, first-quarter earnings season kicks off with the big banks reporting, including JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C), and Wells Fargo (NYSE:WFC), and investors will watch them closely for details about the health of the American consumer.

S&P 500 companies are expected to report a 5.2% drop in first-quarter profit.

Shares of Delta Air Lines Inc (NYSE:DAL) fell 1.2% after the carrier reported disappointing first-quarter earnings but said its second-quarter outlook was strong.

Oil was falling. Crude Oil WTI was down 0.6% to $82.74 a barrel, while Brent crude was down 0.6% to $86.77 a barrel. Gold Futures rose 1.7% to $2,060.

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