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February's Consumer Price Index (CPI) report saw inflation rise by 0.2% month-over-month and 2.8% year-over-year, as published by the US Bureau of Labor Statistics (BLS), just below economist expectations of 0.3% monthly and 2.9% annual gains. US stock futures (ES=F, NQ=F, YM=F) are rising in Wednesday's pre-market trading on the backdrop of this data.
President Trump's 25% tariffs on all steel and aluminum imports into the US have gone into effect today, as EU officials plan for their own retaliatory tariffs.
The team out of Goldman Sachs has cut its year-end price target for the S&P 500 (^GSPC) to 6,200, coining the phrase "the Maleficent Seven" amid the recent tech sell-offs.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
First up, stock futures pushing higher amid a sigh of relief for investors following that February CPI report. Inflation data coming in cooler than expected for last month. The report is a welcome sign for economists who warned the print could be at risk of seasonal adjustments to the upside. Meantime, the president downplaying concerns of a recession when speaking to reporters.
Do you think there will be a recession?
I don't see it at all.
Plus, President Donald Trump's 25% tariffs on steel and aluminum imports going into effect today. The levies have already been met with an immediate response from the EU, the European Union, which plans to impose duties on up to 26 billion euros worth of American goods. The EU will target politically sensitive goods, including soybeans from Louisiana, according to a senior EU official. Other affected countries, including the UK, refrained from immediate action and called for negotiations.
And amid the market sell-off, Goldman Sachs cutting its S&P 500 forecast for the year to 2600 down from 26500, indicating an 11% potential move to the downside from current levels. Actually, move to the upside from current levels. The bank said the revised estimates reflect a reduced GDP growth forecast, a higher assumed tariff rate, and higher levels of uncertainty. Strategists went on to say the cohort of magnificent seven stocks that have driven markets for years have now become the Maleficent Seven. The S&P 500 index.