#CPI&JoblessClaimsWatch The Consumer Price Index (CPI) and Unemployment Insurance Claims are key economic indicators that can influence monetary policy decisions and the stock market.
*CPI: A notable decline*
The CPI fell by 0.1% in March, marking the first decline in nearly five years. This is mainly due to a 3.3% decrease in energy prices. The core CPI, which excludes food and energy, rose by 0.1% month-over-month and 2.8% year-over-year. Although this shows a slowdown in inflation, it is still far from the Federal Reserve's 2% target.¹
*Unemployment Insurance Claims: stability in the labor market*
Initial unemployment insurance claims remained stable at 223,000, suggesting a healthy labor market. Continuing unemployment insurance claims decreased to 1.85 million. These numbers indicate that there is no clear trend of rising unemployment.²
*Impact on the stock market*
The decline in the CPI and the stability in unemployment insurance claims have generated a mixed reaction in the stock market. The S&P 500 experienced a 1.8% drop following the release of this data, after a strong rise of 9.5% the previous day. Stock futures also show a downward trend.³
*Analysis and outlook*
Analysts consider the decline in the CPI to be a positive sign for the economy, as it may indicate a slowdown in inflation. However, the stability in unemployment insurance claims suggests that the labor market remains robust. Regarding the outlook, the Federal Reserve is expected to maintain its vigilant monetary policy to control inflation and support economic growth.
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