Recently, the USA stock market has seen a sharp decline in major stock Indicators, bringing the valuations of major tech stocks close to the lowest levels in the past five years. Meanwhile, the CPI data for February was released in the USA, showing signs of easing inflation and increasing expectations for interest rate cuts by the Fed. Amid uncertainty regarding US tariff policies and economic outlook, should investors consider 'picking up low prices'?
Easing inflation is good news.
The USA Bureau of Labor Statistics released the CPI data for February on March 12.Overall, the CPI increased by 2.8% year-on-year and by 0.2% month-on-month, falling below market expectations.。Additionally, the Core CPI (excluding food and energy) increased by 3.1% compared to the same month last year.This is the lowest level since April 2021. The data has led the market to recognize that inflationary pressures in the USA are easing. In particular, the easing of the Core CPI is attributed to a noticeable decline in energy and transportation costs, which has raised market expectations for interest rate cuts, with at least two rate cuts expected within this year.
On the other hand, the cost of housing, including hotel Lodging fees, rose 0.3% compared to the previous month, accounting for nearly half of the CPI increase in February, and pressure was still observed.