Stock Market Update

The stock market is on track for a higher opening as a peace proposal between the U.S. and Iran has lowered oil prices and furthered the off-ramp narrative. It remains to be seen whether Iran accepts the proposal and how soon it could end the conflict, but the change in rhetoric has provided some cautious optimism after a mostly lower finish yesterday. 

On the data front, import prices were up 1.3% month-over-month in February (prior 0.6%), and nonfuel import prices were up 1.1% (prior 0.8%). Export prices jumped 1.5% month-over-month (prior: 0.6%), and non-agricultural export prices surged 1.7% (prior: 0.7%).

The key takeaway from the report is that import and export prices were up sharply before the start of the war with Iran, which will lead to concerns about inflation rates accelerating in March to account for the spike in energy costs.