US inflation is slowing down, is it enough for a Fed’s pause?

Wall Street fell yesterday

Wednesday has been a negative day for the US stock market.

All three major US indexes reported losses.

The S&P 500 finished flat at -0.41%, the Nasdaq ended the trading session at -0.85% and the Dow Jones closed at -0.11%.

The investors’ sentiment is Greed, as indicated in the graph below:

Sentiment indicator – Fear & Greed Index

The market sentiment is 63, in “Greed” mode in line with the last week’s data.

US inflation is slowing down

Yesterday, the Bureau of Labor Statistics released the consumer price index for March.

The CPI report has shown inflation at 5% which is 1% less than the data registered last year when inflation was at 6%.

The latest CPI data is the at lowest level in almost two years.

The consumer price index has increased by 0.1% on a monthly basis, less than the 0.2% economists’ forecasts.

The core CPI, the index that measures inflation excluding food and energy costs, was at 5.6% in March whit an increase of o.4% on monthly basis. Both data were in line with the economists’ expectations.

The fact that the core CPI are still high, compared to the 2% Fed’s target, makes more probable another interest rate hike in May.

According to the latest Fed meeting minutes, published yesterday, the majority of Fed officials are in favour of another rate increase this year before a pause.

What to watch today

The weekly initial jobless claims will be released today at 13:30 GMT by the US Labour Department.

It is forecasted that last week 232,000 benefits forms have been filled.

The US Producer Price Index (PPI) will also be published today at 13:30 GMT, important data to understand the inflation level.

The stock market could volatile today.

Portfolio update

I remain neutral and cautious about the stock market since the trend is not clearly defined.

I hold long and short stock positions and aim to profit regardless of the market direction.

If you are already copying my portfolio, please keep the copy open.

If you are thinking of copying me, now could be the right time, if you can invest for the long term (years).

Remember to copy the open trades to optimize the copy.

Remember to set the stop loss on the copy at the minimum level, so you don’t get stopped if there is a correction.

Thank you, everyone. Have a nice day!

Steps to follow to copy my portfolio automatically:

1. Create an eToro account here:

2. Verify your account and make a deposit of at least 200 USD (you can deposit in any currency, like GBP and EUR)

3. Go to my profile page:

4. Start the copy (copy open trades and set the lowest stop loss possible, to allow some movement)

5. Enjoy, it’s all automatic. You will make passive income 24/7

Let me know if you have any questions.


Federica Montella

eToro Popular Investor


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Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.