Inflation Mixed as Energy Drives Headline Higher

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U.S. inflation data delivered mixed signals in March, as a surge in energy costs lifted headline prices while underlying inflation remained subdued, reinforcing expectations that the Federal Reserve could maintain a more flexible policy stance.
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Consumer prices rose 0.9% on the month, with annual inflation at 3.3%, driven largely by a 10.9% increase in energy prices, including a 21.2% jump in gasoline. Core inflation rose 0.2% monthly and 2.6% year-over-year, pointing to more moderate underlying price pressures.
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Producer prices increased 0.5% in March, below expectations, while core PPI rose 0.1%, suggesting companies are absorbing higher input costs rather than passing them on, supporting margins and rate-cut expectations.
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Mortgage rates edged lower, with the average 30-year rate declining to 6.42% from 6.51% a week earlier, offering limited relief to the housing sector.

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Stocks Rise on Risk Sentiment, Tech Leads Gains

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Investor sentiment was supported by easing geopolitical tensions, as a fragile ceasefire between the United States and Iran helped stabilize oil prices at around $91 per barrel, down from recent highs but still elevated. The agreement, set to expire on April 22, remains a key driver of market direction.
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Equities extended gains, with technology stocks rising 1.6% and consumer discretionary advancing 1.5%, supported by strength in AI-related names and a surge in Tesla shares. Industrials fell 1.3%, while materials and utilities also declined as investors rotated out of defensive sectors.
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Among major movers, Tesla shares jumped 7.6% after the company announced progress on its next-generation AI chip, while Microsoft gained 4.6% following cloud and data center expansion updates. DoorDash and Robinhood rose more than 10% each, supported by favorable industry developments.
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On the downside, Carrier Global fell 9.5% on concerns about residential HVAC demand, dragging down peers including Lennox International and Stanley Black & Decker. Gold miner Newmont declined 5.3% despite elevated gold prices, as investors took profits.

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Focus Turns to Data, Earnings and IPO Pipeline

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Markets are now focused on upcoming U.S. data releases, including jobless claims, retail sales, and industrial production, which could provide further insight into the strength of the labor market and consumer demand.
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Attention is also turning to earnings, with reports expected from Morgan Stanley, Bank of America, UnitedHealth, and Netflix, while Taiwan Semiconductor has already posted strong revenue growth of 35% year-over-year.
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In capital markets, several companies are preparing to go public, including Madison Air Solutions, Kailera Therapeutics, and defense technology firm AEVEX Corp., highlighting continued investor appetite for new listings.
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Meanwhile, SpaceX is preparing for a potential IPO, with a confidential filing completed earlier this month and a roadshow expected in June targeting a valuation of about $1.75 trillion, which would make it the largest public offering on record.