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The Market News Today: Fed’s Kashkari Needs More Positive Inflation for Rate Cut

By:
James Hyerczyk
Updated: May 28, 2024, 08:36 GMT+00:00

Key Points:

  • The Fed's Neel Kashkari insists on extensive positive inflation data before considering Fed rate cuts.
  • Gold prices slightly lower as market eyes upcoming U.S. inflation data and Fed's next moves.
  • Oil prices surge due to strong U.S. summer demand expectations and forthcoming OPEC+ meeting.
  • Stock futures up as investors await critical inflation data; Dow tops 40,000 amid positive trend.
  • Nvidia's 10-for-one stock split aims to attract retail investors and potentially ease its inclusion into the Dow.
The Market News Today

In this article:

Fed’s Kashkari: Rate Cuts Depend on Sustained Inflation Progress

Minneapolis Fed President Neel Kashkari emphasized the need for “many more months of positive inflation data” before considering rate cuts. Speaking to CNBC, Kashkari stated that without significant inflation reduction, the Federal Reserve might maintain or even increase interest rates. His remarks align with previous comments on potentially holding rates steady throughout the year.

Gold Prices Dip as Investors Eye U.S. Inflation Data, Fed Moves

Gold prices decreased slightly on Tuesday amid anticipation of upcoming U.S. inflation data and Federal Reserve actions. Investors are evaluating potential shifts in U.S. monetary policy which might favor rate hikes, posing risks to gold’s valuation. Despite this, spot gold currently holds short-term optimism, with $2,310 identified as crucial support. The upcoming release of the core PCE index this Friday will further influence expectations, as recent Fed minutes hint at maintaining or increasing rates.

Oil Prices Climb as Summer Demand and OPEC+ Decisions Loom

Oil prices are sharply higher ahead of U.S. opening, fueled by expectations of robust U.S. summer fuel demand and an upcoming OPEC+ meeting on June 2, where output policies may sustain price increases. Despite concerns over high interest rates dampening demand, real-time data suggests healthy oil consumption. Additionally, anticipations of continued voluntary production cuts and potential easing of U.S. monetary policies are likely to propel prices higher. Positive economic moves from China further bolster the outlook for oil demand.

Stock Futures Rise as Investors Anticipate Key Inflation Data

Stock futures increased on Tuesday, with the market optimistic as investors await crucial inflation data expected by week’s end. This anticipation follows a positive trend in May, spurred by mild inflation figures and strong quarterly earnings, hinting at possible early rate cuts. However, recent robust economic indicators and concerns over consumer spending have slightly clouded the rate cut outlook. Major indexes like the S&P 500 and Nasdaq have shown significant gains, with the Dow surpassing 40,000 for the first time.

Nvidia’s Stock Split Targets Retail Investors, Eyes Dow Entry

Nvidia plans a 10-for-one stock split following a sharp rise in its share price, aimed at making shares more accessible to retail investors and potentially facilitating inclusion in the Dow Jones Industrial Average. This move comes as Nvidia’s market value has soared, with the company becoming a focal point of investor interest, particularly in AI technology. The split is expected to attract more individual investors and align Nvidia’s stock price more favorably for Dow eligibility.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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