Dow Jones Industrial Average (^DJI)
| Previous close | 38,085.80 |
| Open | 38,114.70 |
| Volume |
| Day's range | 38,065.05 - 38,302.77 |
| 52-week range | 32,327.20 - 39,889.05 |
| Avg. volume | 342,008,225 |
- Yahoo Finance Video
Inflation data could force Fed's hand on rate hikes: Economist
March's Personal Consumption Expenditures (PCE) data arrived hotter than expected and GDP figures point to an economic slowdown. In this environment, economists and investors alike are revisiting the Federal Reserve's rate cut outlook. Stifel Financial Chief Economist Lindsey Piegza joins Yahoo Finance to discuss the prospects for Fed cuts. Piegza notes that although March's PCE did not show "a material increase" in inflation, the Fed had been "expecting a sizable reversal" supporting the disinflationary trend. She suggests that this report could force another adjustment to the Fed's outlook and further delay any near-term rate cuts, with the possibility of rate hikes even coming back into consideration. Regarding consumer behavior, Piegza acknowledges that the consumer remains "very resilient." However, she observes that consumers are becoming more cost-conscious, carefully weighing their spending decisions and seeking value, leading to a slowdown in "broad-based growth." "Without more of a meaningful decline or improvement in inflation, after that minimal concession, I think the Fed's hands are tied, and we'd likely see the Fed move back to the sidelines for a second, extended pause," Piegza tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance. This post was written by Angel Smith
Yahoo FinanceInvestors are more worried about inflation than a weakening economy
Fresh data on Thursday showed further signs of sticky inflation, pushing bond yields higher and weighing on stocks.
- Yahoo Finance Video
The market is saying there's no 'growth problem': Strategist
Despite Thursday's weaker-than-expected GDP figure, which hinted at a slowing economy, Truist Co-Chief Investment Officer and Chief Market Strategist Keith Lerner joins Market Domination to explain why this number doesn't accurately reflect the economy's growth trajectory. Lerner argues that the GDP data was fine "underneath the hood," showing that consumers and businesses were still spending, and underlying demand remained robust. He notes, "the market's hanging in there relatively well," emphasizing that a deeper examination of the GDP components revealed "there's still solid economic growth." On the inflation front, Lerner acknowledges that he had anticipated a post-pandemic economic slowdown. However, even with solid growth, he remains optimistic that inflation can be brought down to the 2% target. Addressing concerns about stagflation, he states, "It's a risk, not our base case." Lerner points to the strong performance of the energy (XLE), financials (XLF), and industrials (XLI) sectors as evidence that "the market is telling you that we don't have a growth problem at this point." This market behavior reinforces his view that the underlying economic fundamentals remain robust, despite the weaker GDP reading. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith
