Consumer price inflation moderated in January but stayed well above the target set by the Federal Reserve setting the stage for higher interest rates.

Stocks advanced on Wall Street ahead of the CPI report on Tuesday. Crude oil and natural gas prices drifted lower and the European Commission raised its 2023 estimate of the Euro Area growth.

World markets traded sideways amid slowing corporate earnings and the worries of rising interest rates kept investors on edge. With earnings season approaching the midpoint, downward revisions are taking the center stage.

Investors struggled to forecast earnings after lackluster corporate results and growing unease about the level and duration of peak interest rate.

Investors are grappling with a new reality of falling earnings and growth after companies report headwinds from macroeconomic conditions, restrained consumer and stronger U.S. dollar.

Investors shift focus to corporate earnings and energy prices traded near one-year low amid rising tensions between the U.S. and China.

Market indexes shook off rate anxieties and tech stocks led today's advance after Chairman Powell said inflation is slowing but has a long way to go. U.S. Trade deficit soared after the international goods deficit expanded and service surplus shrank.



Stocks lacked direction and benchmark indexes bounced around after the Federal Reserve Chairman Powell said it will take time for inflation to cool. U.S. international trade deficit soared in 2022 on robust demand and high energy prices.

With the earnings season in full-swing, investors took a cautious view of corporate results in the face of strong dollar, rising rates and slowing global economic backdrop for the next two quarters.

Treasury yields advanced following the unexpectedly strong January payrolls data. Services added jobs at a faster clip despite the recent string of unabated layoffs from major tech companies. The monthly data did not reflect the implementation of higher minimum wages in several states from the beginning of January.

U.S. indexes extended weekly gains despite the Friday's market weakness after strong jobs data renewed interest rate worries. European markets advance on earnings. Post-Lunar holiday powered Chinese stocks but Hong Kong trimmed gains.

The surge in non-farm payrolls raised questions about the monthly jobs report quality but also raised worries that wage gains may accelerate in months ahead and fuel broader inflation.

Benchmark indexes advanced more than 1% and the tech-heavy indexes soared 3% ahead of key earnings from Alphabet, Amazon and Apple.

Stocks accelerated gains for the second day in a row after investors looked beyond rate hikes across the Atlantic.



Stocks powered ahead after the Fed slowed interest rate hike and Chairman Powell acknowledged cooling inflation. Tech stocks led the gainers but crude oil and natural gas prices eased.