American market becomes victim of inflation
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Inflation Data: Expectations of reduction in loan interest rates by the Fed Bank may face a major setback. Once again, inflation rates are increasing in America. Effect of inflation in petrol and shelter cost year on year Consumer Price Index (Consumer Price Index) increased by 0.4 percent. The consumer price index has increased to 3.5 percent in the month of March. Earlier in February, the inflation rate had increased by 3.2 percent. However, after this, a reduction in loan interest rates is expected again. These figures have been released by the US Labor Department. Due to strengthening inflation, Dow Jones slipped by 1.18 percent or more than 458 points. Whereas, a decline of 180 points or 1.13 percent was seen in Nasdaq. The S&P 500 fell 1.06 percent or 55 points.
The target was to reduce the inflation rate to two percent.
Let us tell you that the American Central Bank Federal Reserve had set a target of bringing the inflation rate to 2 percent. After this, the possibility of cutting interest rates was expressed in June. Retail inflation rate is going to be released in America today. In such a situation, if it is higher than expected then the possibility of interest rate cut in June will reduce. However, the big thing is that inflation is still lower than in June 2023.
What will be the impact on Indian market?
Today is Eid holiday in Indian stock market. However, experts believe that when the market opens on the last trading day of the week, its impact will be visible on the domestic stock market. Earlier on Wednesday, the Indian stock market closed with a rise. BSE’s 30-digit Sensex crossed 75 thousand for the first time and closed at 75038 points. Whereas, Nifty closed at 22753. FII had purchased Rs 2778 crore and DII had purchased Rs 163 crore. Meanwhile, India’s retail inflation data and IIP data is also going to be released on Friday.
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