U.S. consumer price index (CPI) rose 6.4% in the 12 months through January

 U.S. consumer price index (CPI) rose 6.4% in the 12 months through January – the smallest gain since October 2021. However, CPI increased 0.5% last month after gaining 0.1% in December, in line with expectations.

The question of how long the Fed could continue to raise rates was still potent, as raising rates more than needed could clamp-down on the economy, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Money market traders have priced in at least two more 25 basis point rate hikes this year and see interest rates peaking at 5.2% by July.

Earlier in the day, Euro zone gross domestic product growth slowed in the last three months of 2022 but stayed in positive territory along with a resilient labour market.