What to know in markets Wednesday

2020/3/11 18:43:12

Investors will continue to monitor the coronavirus outbreak Wednesday and its impacts on financial markets and the economy.

On Tuesday, stocks rocketed into the close, with each of the three major indices ending the session more than 4.8% higher. The Dow’s surge amounted to a more than 1,100-point gain, recovering more than half of the prior day’s losses.

The jump came as investors hoped policymakers would follow through with further stimulus to help counteract any economic fall-out from the outbreak, which as of Tuesday included more than 116,000 infections and 4,000 deaths. Concerns over the effects of the global outbreak have stirred up a whirlwind of volatility in risk assets since late February.

“It’s market March Madness at the moment, complete with surprising losses, upsets, and comebacks,” Mike Lowengart, managing director of investment strategy at E-Trade Financial Corporation, said in an email Tuesday. “[Monday’s] volatility harkened back to ’08 levels between VIX highs and SPX lows, yet today we’re seeing the markets recoup yesterday’s losses on the news of possible payroll tax relief with energy and financials leading the charge.”

“That said, it’s impossible to know when the markets will hit bottom, and any bad or uncertain news could send us back into a tailspin,” he added.

On Wednesday, investors will receive new domestic economic data on consumer prices, with the Bureau of Labor Statistics releasing its monthly consumer price index (CPI) at 8:30 a.m. ET. But with inflation levels persistently subdued, the data will “likely be a non-event,” Lowengart said.

Consensus economists expect the headline CPI will be flat in February versus January, according to Bloomberg consensus data. This would represent a deceleration to zero growth after January’s 0.1% month on month rise. CPI is anticipated to have risen 2.2% over last year, also slowing after January’s 2.5% jump.

Declines in energy prices in February likely weighed on consumer prices overall, though Wednesday’s print will not capture any impact from the crude oil price sell-off from the beginning of this week.

From: Yahoo