Inflation Uptick Sparks Broad Sell-Off 📉

Good Afternoon! 

Hey, everyone. It's Adam from Elite Trade Club. 

Here’s what moved the market today.

Markets 📈

Stocks sold off after a hotter-than-expected March CPI report dashed hopes for an imminent rate cut. Small-caps underperformed, while the Dow posted the steepest loss among large-cap indexes.

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Market-Moving News 🔎 

🤦🏻‍♂️ The Fed is in a Tough Spot After March CPI Report

The consumer-price index (CPI) for March, showing a year-over-year increase of 3.5%, has become a focal point for the Federal Reserve, especially after the willingness to overlook higher-than-expected inflation readings in January and February. This recent surge underscores the heightened scrutiny on inflation trends and the Fed's response strategy.

Powell's Stance ⚖️
Fed Chair Jerome Powell has been navigating through the complexities of recent inflation data, emphasizing the need for a balanced approach to potential interest rate cuts. Despite previous periods of improvement, the latest CPI data may challenge the Fed's threshold for action, especially with Powell highlighting the significance of forthcoming decisions in a "highly consequential" economic context.

Market Skepticism 💡
The market's reaction to the March CPI report reflects growing skepticism towards the Fed's capacity to lower rates in the near term. Initially, expectations leaned towards multiple rate cuts throughout the year, but the outlook has shifted dramatically, with predictions now suggesting a more cautious, limited approach, potentially impacting the broader economic landscape and future policy directions.

Interest Rate Outlook 🏦
The resilience of economic activity, combined with the latest inflation trends, has led to a recalibration of expectations for the Fed's interest rate policy. Traders now anticipate that rates could remain elevated through the end of 2025, a scenario that could have far-reaching implications for both the economy and monetary policy moving forward.

"Bumps" Ahead 🚧
As the Fed evaluates its policy options in the face of recent inflation data, the broader economic implications loom large. The March CPI report, alongside Powell's cautious yet open stance on rate adjustments, sets the stage for a critical period in the Fed's efforts to manage inflation while supporting ongoing economic growth and stability.

Adial Pharma [ADIL] $2.33 (+106.1%)
published new clinical research showing its AD04 drug produced favorable results, a strong safety profile, and high patient compliance.

Rent the Runway [RENT] $7.40 (+36.2%)
rallied in anticipation of its Q4 results, which were published after the closing bell. RENT is up another 40.9% in the aftermarket.

Marin Software [MRIN] $0.6497 (+126.3%)
announced enhancements to its Microsoft Advertising integration.

Processa Pharma [PCSA] $1.84 (36.7%)
slid after Refinitiv/Verus downgraded the stock from “HOLD” to “SELL” on Monday.

Aptevo [APVO] $2.40 (26.3%)
announced advancements in some of its clinical and preclinical programs that weren’t received well by the market.

Palisade Bio [PALI] $4.07 (24.9%)
presented a development overview for PAL-2108 at the Crohn’s & colitis industry conference in Cambridge, MA.

That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback from our members!

Thanks for reading. I'll see you at the next open! 

Best Regards,
— Adam G.
Elite Trade Club

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