The US Department of Labor announced yesterday that the Producer Price Index (PPI) for April increased by 0.5%, exceeding market expectations, indicating that inflationary pressures may take longer to ease. Federal Reserve Chairman Jerome Powell reiterated that the decline in inflation is slower than expected, which will cause the central bank to remain patient for a longer period of time. Yesterday, the Nasdaq, representing US technology stocks, closed at a new all-time high, and “meme stocks” GameStop (GME) and its namesake token GME surged for two consecutive days due to the return of Roaring Kitty.
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Time for Powell to Remain Patient Will Be Extended
PPI Exceeds Expectations, Market Awaits CPI Data
Nasdaq Sets New All-Time High, Meme Stocks Continue to Surge
Federal Reserve Chairman Jerome Powell reiterated on Tuesday that the decline in inflation is slower than expected, which will cause the central bank to remain patient for a longer period of time. According to CNBC’s report, Powell stated in his speech at the annual meeting of the International Banking Association in Amsterdam:
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“We never expected this to be a smooth road. But these (inflation data) are higher than I think anyone expected. This tells us that we need to remain patient and let the restrictive policies take effect.”
Although he expects inflation to decline this year, he has not seen such a situation so far.
However, Powell also reiterated that he expects the Fed will not raise interest rates.
The US Department of Labor announced on the 14th that the Producer Price Index (PPI) for April increased by 0.5%, exceeding market expectations. Inflationary pressures may take a longer period of time to ease due to the surge in service prices.
US CPI inflation data will be released on Wednesday (15th). Economists estimate that the overall CPI for April increased by 0.4%, mainly due to the rise in gasoline prices to a six-month high. Although the inflationary trend of core products has largely subsided, the inflation rate of core services remains high. However, after the unexpected CPI in the previous month, it is expected that the CPI for April will have a slight respite.
According to the CME FedWatch Index, the market generally expects that the Fed will have a chance to start the rate-cutting cycle after September.
Yesterday, the Nasdaq, representing US technology stocks, closed at a new all-time high of 16,511.18.
“Meme stock” GameStop (GME) surged 60.10% to $48.75 per share on Tuesday. The GME token with the same name also surged by 70%. Roaring Kitty, who led the epic GameStop short squeeze event, released stickers and a series of videos on X for the first time after three years of silence, causing FOMO sentiment in the community.
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GameStop Short Squeeze Leader Roaring Kitty Returns, GME Stocks/Tokens Surge
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