Wall Street’s main stock indexes gained on Tuesday supported by retreating Treasury yields, while investors awaited a key inflation print later in the week that could help shape the Federal Reserve’s stance on interest-rate cuts this year.
“I would not be surprised, given the underlying strength in the economy, that it comes in a little warmer than expected, but that doesn’t seem to be particularly worrisome for investors,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott. Current bets of around a 60-basis-point easing are the lowest since October, according to LSEG data, compared to about 150 bps priced in at the start of 2024.
Minutes of the Fed’s March meeting – where it stuck to its guidance of three rate cuts this year – are due later in the week and could be key in gauging where the central bank stands on policy easing. All 11 major S&P 500 sectors were trading higher, with real estate and communication services among the top gainers.