This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Asia stocks mixed
Asia markets were mixed Wednesday with Japan's Nikkei 225 and the Topix trading lower. South Korea's Kospi rose after February's jobless rate fell to 2.6%, but the small-cap Kosdaq snapped a three-day winning streak. Overnight, Wall Street closed higher with the S&P 500 hitting a fresh record, up 1.1%. The Dow gained over 200 points, while the Nasdaq added 1.5% as U.S. inflation data came in mildly higher than expected in February.
BOJ may exit negative rates soon
There is growing speculation the Bank of Japan may exit its negative rate policy as early as next week, even as most analysts expect the first rate hike to take place in April. Despite high inflation, the BOJ hasn't really shifted from its ultra-loose monetary policy that has been in place in 2016.
Rate cut pivot in 2024
Central banks worldwide could make a rate cut pivot in 2024. Interest rates in most countries remain high but economists anticipate a rollback this year, said the Economist Intelligence Unit in a report. Beijing has already begun to ease rates, it added.
Boeing crisis hurt airlines
CEOs from several airlines say Boeing's delivery delays have forced the carriers to change their growth plans. Boeing's crisis has deepened since a door plug blew out midflight from an Alaska Airlines Max 9 in January. Southwest Airlines, Alaska Airlines and United, are some of the top buyers of Boeing's aircraft that have been impacted by its problems.
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Nvidia's stock has surged over 200% in 2023 alone, powered by the global AI frenzy. Is it time to take profit or should investors stay the course? Experts who currently hold the chip giant's stock share their insights.
The bottom line
Inflation data came in hot for a second straight month.
February's consumer prices data was a touch better than January's troubling inflation print.
Still, core inflation — excluding food and energy — was stronger than expected, up 0.4% last month, which reflects lingering stickiness in price pressures.
Investors don't expect that latest data to move the needle on the Fed cutting rates in June. That could be why markets have had a more muted reaction to the news.
"We have the numbers we have and this wasn't great news for the Fed but markets don't see it as a big threat to rate cuts later in the year," Kathy Jones, chief fixed income strategist at Charles Schwab, said on X.
Yet, the hot print poses a problem for the Fed and muddies the water for its deliberations on the coming rate cuts.
"The long-term disinflation trajectory probably has not changed, but the path to the Federal Reserve's 2% target will be choppy," noted LPL Financial chief economist Jeffrey Roach. "Expect to see markets struggle with what this means for Fed policy."
There is a lot riding for Wall Street when the central bank meets next week. Investors' main focus will be on whether the Fed will continue to pencil in three rate cuts for this year or will officials decide to change course.
