Investing.com -- The hot March inflation report has resulted in an unwinding of rate cut expectations for June, and traders will look at the producer prices report for more clarity. The European Central Bank holds its latest rate-setting meeting, while the earnings season kicks into top gear.The hotter-than-expected March consumer inflation report has resulted in an unravelling of Federal Reserve rate cuts expectations, with a reduction in June now looking more and more unlikely.increased by 3.
“We continue to expect cuts at a quarterly pace after that, which now implies two cuts in 2024 in July and November,” analysts at the influential investment bank said, in a note dated April 10. The main Wall Street indices closed sharply lower Wednesday in the wake of the CPI report, as investors begin to factor in the Federal Reserve implementing fewer rate cuts this year than previously expected.
With the major U.S. stock indices at highly elevated levels and doubts growing that the Federal Reserve will start cutting interest rates any time soon, this earnings season will likely have to be impressive to avoid a hefty retracement.