[뉴욕 개장 전 점검] Taking a breather after the stock market rally… Pay attention to CPI data

[뉴욕=박재형 특파원] We summarize major issues before the stock market opens on the 13th (Wednesday), New York local time.

Taking a breather after the stock market rally

Stock index futures on the New York Stock Exchange fell as the market waited for the latest Consumer Price Index (CPI) data. Stock markets tumbled Tuesday, taking a breather from the post-election rally. The Dow, which consists of 30 stocks, fell about 382 points (0.9%), the S&P 500 index fell 0.3%, and the Nasdaq composite index centered on technology stocks fell 0.1%. “Part of the market decline on Tuesday was due to profit-taking from the post-election strength, as well as positioning ahead of the inflation report scheduled for Wednesday and the retail sales report on Friday,” said Tom Heinlin, senior investment strategist at Bank of America Wealth Management.

Pay attention to CPI data

Investors are keeping an eye on the October CPI numbers to be released Wednesday morning. Economists surveyed by Dow Jones predict that the CPI will rise 0.2% monthly and 2.6% annually. The pace of inflation is an important factor in the Federal Reserve’s decision to lower or maintain interest rates. “This will be a busy week for consumer prices, producer prices and retail sales,” said Scott Helfstein, head of investments at Global X ETF. “All of this data could suggest that the economy remains strong,” he said. “Ironically, markets may be less sensitive to this week’s data after the election and the Fed’s interest rate cut last week.”

Mortgage interest rates are on the rise

Mortgage interest rates continued to rise last week. The mortgage market remained calm, with overall application volume increasing by 0.5% with little change. This was the first increase in demand in seven weeks, but the change was minimal. According to the Mortgage Bankers Association’s (MBA) Seasonally Adjusted Index, the average contract interest rate on a 30-year fixed-rate mortgage is higher than the average contract interest rate on a 30-year fixed-rate mortgage. “It’s because of the rate of return,” he said, adding, “Myeonjun’s 25bp (0.25% point) interest rate cut was already expected and did not have a significant impact on the market.”

Stock index futures fall

Based on CNBC data, Dow Jones futures fell 0.25%, Nasdaq futures fell 0.26%, and S&P 500 futures fell 0.21%. In Wall Street Journal data, the U.S. dollar index fell 0.09% to 105.93, the 10-year U.S. Treasury yield fell 1.6bp to 4.423%, and WTI futures rose 0.15% to $68.24 per barrel.

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