Equities recovered from yesterdays inflation nerves, led by tech, as data showing cooling producer prices eased inflation jitters somewhat just a day ahead of earnings from major Wall Street banks.
Equities pared back steep early losses to only finish down 1% after hotter-than-expected inflation data threw cold water on hopes that the Federal Reserve would begin cutting interest rates as early as June.
Equities closed slightly higher as investors marked time ahead of key inflation data being released tonight. Treasury yields traded lower ahead of the data, giving light relief to the equity market.
Equities closed flat overnight amid cautious trading ahead of the latest inflation reading as well as the start of the first-quarter earnings season later this week.
Equities rallied Friday night despite very strong US employment numbers put any form of rate cuts this year into question.
Investors remained deluded that rate cuts hopes and a strong economic numbers can co-exist as equities had a relief rally due to Fed chair Powell saying rate cuts remain on the table for this year.