On the evening of the 10th Beijing time, US stocks continued to decline in early trading on Wednesday, with the Dow down more than 500 points at one point. Us CPI rose more than expected in March, indicating that inflationary pressures are still high, triggeringFreespinsonregistrationnodeposit2021People are worried that the Federal Reserve may not cut interest rates this year.Freespinsonregistrationnodeposit2021To worry about. After the release of CPI data, the yield on 10-year Treasuries broke through 4.Freespinsonregistrationnodeposit2021.5% hit a new high for the year.

The Dow fell 491.Freespinsonregistrationnodeposit2021.29 points, down 1.26% at 38392.38; the Nasdaq fell 171.54 points, or 1.05%, to 16135.10; and the S & P 500 index fell 56.62 points, or 1.09%, to 5153.29.

Treasury yields climbed on Wednesday morning, with the 10-year yield breaking through 4.5% to a year-high. The yield on the two-year note rose 16.5 basis points to 4.912 per cent. The yen fell below 152 against the dollar, a 34-year low.

Us March CPI data show that inflationary pressures remain high

Investors ushered in closely watched March CPI inflation data ahead of the opening of US stocks on Wednesday, based on which they lowered their expectations for the Fed's interest rate policy path.

The US consumer price index (CPI) rose 0.4 per cent month-on-month in March, rebounding to 3.5 per cent from a year earlier, the Bureau of Labor Statistics reported on Wednesday.

Excluding volatile food and energy prices, core CPI core CPI rose 0.4 per cent month-on-month in March and 3.8 per cent year-on-year, both higher than expected.

Economists surveyed by Dow Jones had expected US CPI to rise 0.3 per cent month-on-month and 3.4 per cent year-on-year in March; excluding volatile food and energy prices, core CPI was expected to rise 0.3 per cent month-on-month and 3.7 per cent year-on-year.

The CPI index rose faster than economists expected in March, indicating stubborn inflation and lowering market expectations of a Fed rate cut.

After the release of the report, the yen fell below 152 yen to the dollar, its lowest level since July 1990.

The March CPI report may have shattered the illusion that the inflation report of the last two months was an "anomaly".

At a news conference last month, Powell admitted that CPI data for the first two months of 2024 broke the trend of a significant slowdown in inflationary pressures that began in June 2023. At the time, Powell warned not to simply revise the overall inflation outlook on the basis of two reports, and that stronger inflation in January and February could be partly due to seasonal factors.

Wednesday's CPI inflation report is further evidence that while the Fed keeps interest rates at 20-year highs, its efforts to curb inflation may be being thwarted. With a strong labour market still driving household demand, Fed officials have insisted they would like to see more evidence that price pressures are continuing to cool before lowering borrowing costs.

Institutional comments pointed out that Wednesday's US CPI data further proved that US monetary policy is not as restrained as the Fed believes, so interest rates need to remain higher and longer.

The market lowered its bet on the Fed's interest rate cut this year.

After March CPI data showed higher-than-expected inflation, market bets on the Fed's rate cut in June almost disappeared, and even the outlook for July looked even more unstable. Traders also confirmed their expectations: interest rates will be cut only twice this year, while the Fed's bitmap is expected to cut rates three times.

Swap markets show that the likelihood of the Fed cutting interest rates in June has declined and postponed the Fed's first rate cut from September to November; swaps show that the Fed will cut interest rates by only 50 basis points in 2024; money markets expect the ECB to cut interest rates by about 80 basis points in 2024, compared with 87 basis points before the data are released.

Robert Pavlik, senior portfolio manager at Dakota Wealth, said: "the inflation data are hotter than expected and both overall and core data have contributed to the decline in futures, as the data show the stickiness of inflation and the possibility that the Fed will either cut interest rates less or not at all in 2024. I don't think this suggests the need to raise interest rates, but the stock market must be repriced to adapt to the different environment brought about by the inflation data. "

"the interest rate market needs to seriously consider the possibility that interest rates will remain high for a longer period of time, at least until the summer and possibly until the end of the year," said Rosner, an analyst at Goldman Sachs. The inflation figures did not undermine the Fed's confidence, but they cast a shadow over it. "

Gregory Faranello, head of US interest rate trading and strategy at AmeriVet Securities, said: "the stronger-than-expected CPI confirms that the Federal Open Market Committee (FOMC) will take a more cautious approach to interest rate cuts. This also supports our short-term bearish view on the US Treasury market as we are trying to overcome the obstacles on the road to 2 per cent inflation. "

David Kelly, chief global strategist at JPMorgan Asset Management, said the report shows that the door for the Fed to cut interest rates in June has been closed.

Quincy Krosby, chief global strategist at LPL Financial, said higher-than-expected CPI inflation data in March could lead to a severe correction in US stocks after rising at the start of the year.

Nick Timiraos, a financial journalist known as the New Federal Reserve News Agency, pointed out that given the underreaction of Fed officials to the January and February inflation data, the renewed hot inflation data in March could lead to the Fed's "overreaction".

Timiraos said that if the CPI data showed another setback in the Fed's progress in curbing inflation, it could upset the Fed's plan to cut interest rates in June and delay the first rate cut to July or even later.

In addition to Wednesday's inflation report, investors are waiting for the Fed to release the minutes of its March monetary policy meeting, hoping to find further clues to policymakers' position on expected interest rate cuts this year.

Focus stocks

Morgan Stanley raised its target price for Nvidia to $1000 on Wednesday from $795.

On Tuesday, Intel launched the Gaudi 3 AI chip at a "fraction" of the cost of the Nvidia H100 chip and announced it had won contracts from companies such as Dell, Hewlett-Packard and Lenovo. Nvidia said that compared with the Nvidia H100, the Gaudi 3 improved training performance by 170%, reasoning ability by 50%, and efficiency by 40%, but the cost was much lower.

Morgan Stanley said it cut Boeing's target price from $235 to $180, maintaining a "neutral" rating, given the slowing pace of delivery.

"Indian Business online" 10 local time quoted sources as saying that the US electric car manufacturer Tesla is in talks with India's Reliance Industries to discuss the establishment of a joint venture and a plant in India.

In addition, a person familiar with the matter said that Musk will visit India on April 22 local time to meet with Indian Prime Minister Narendra Modi. It is reported that Musk is expected to announce news related to Tesla's investment plan and building a factory in India.

Apple has assembled $14 billion worth of iPhone in India in fiscal year 2024, according to media reports on Wednesday. The Indian government's fiscal year usually begins on April 1 and ends on March 31 of the following year.

Apple currently produces about 1/7 of its global iPhone devices in India, according to people familiar with the matter. It is worth mentioning that the latest release of Indian production data has doubled from a year ago. According to a report a year ago, Apple assembled more than $7 billion of iPhone in India in 2023 and produced nearly 7 per cent of its iPhone in India.

At the Google Cloud Next 2024 event, technology giant Google announced a major development: its first Arm-based CPU designed specifically for data centers, named Axion. The new processor marks Google's latest breakthrough in cloud computing hardware, aimed at improving data center performance and energy efficiency.

Delta expects adjusted earnings of $2.2 to $2.50 per share in the second quarter, compared with a market estimate of $2.23.

Faraday announced the establishment of a sales entity in the Middle East in the future.

Ma Yun said Alibaba has returned to the track of healthy growth.

TSMC's sales rose 34.3% in March from a year earlier.

Xiaopeng Auto official announced that he officially entered the Hong Kong and Macao market.