Stocks opened higher after new data showed inflationary pressures remain tame. The data gives some investors a positive sign that the Fed will continue their hold on interest rate hikes. The Fed now has room to remain patient.
Bond prices are relatively flat, and the 10-year is yielding 2.65%. Investors are continuing to monitor global and economic developments. All eyes will be set on the UK as Theresa May holds another vote to leave the EU, ahead of a March 29 deadline. A “hard” Brexit could cause serious economic disruption in Europe during a time where the area is already faltering economically.
U.S. core inflation unexpectedly cooled on autos and prescription drugs, giving the Fed more room to remain patient on raising rates. The core CPI rose 0.1%, excluding food and energy. This number came in lower than estimates of economists.