Prices that consumers pay on everyday items surged in March to their highest levels since the early days of the Reagan administration, according to Labor Department data released Tuesday.
Stock futures jump after CPI report on hope inflation is peaking. Nasdaq 100 e-minis were up 187.25 points, or 1.34% after the inflation data. Dow e-minis were up 135 points, or 0.39%, S&P 500 e-minis were up 31.25 points, or 0.71%.
Excluding food and energy, the CPI increased 6.5%, in line with the expectation.
The data reflected price increases not seen in the U.S. since the stagflation days of the late 1970s and early ’80s. March’s headline reading in fact was the highest since December 1981.
To combat inflation, the Federal Reserve has begun raising interest rates and is expected to continue doing so through the remainder of the year and into 2023.
The 10-year Treasury yield fell more than 6 basis points to 2.717% following the CPI reporter after earlier touching 2.82% a level not seen in more than three years. (1 basis point equals 0.01%).
The gain in stocks was capped slightly as oil prices were jumping again Tuesday morning. The international benchmark Brent crude jumping 4.3% to $102.74 per barrel. Meanwhile, West Texas Intermediate crude futures gained 4.1% to $98.17 per barrel.
Investors are also awaiting the start of earnings season set to kick off Wednesday with JPMorgan and Delta Air Lines, followed by several big banks on Thursday.