Key Takeaways
- Dallas Federal Reserve President Lorie Logan issued a cautious outlook, stating that inflation is running above target and trending higher, with tariffs contributing to goods inflation and posing risks to inflation expectations if uncertainty continues. She also noted that while the labor market is gradually slowing and "very close" to maximum employment, a recent rate cut was "insurance" against a more rapid decline.
- Precious metals experienced a downturn, with spot silver slipping nearly 3% to $45.9/oz and spot gold falling almost 1% to $3,830/oz.
- Colonial Pipeline (COLPIPE) halted operations on its main delivery lines due to unplanned system maintenance, with expectations to restart before noon EDT on Thursday.
- The US Treasury announced significant debt sales, including $58 billion in 3-year notes, $39 billion in 10-year notes, and $22 billion in 30-year bonds.
- US natural gas stockpiles rose by 53 BCF last week, falling short of the estimated 66 BCF increase.
Dallas Federal Reserve President Lorie Logan delivered a hawkish message, emphasizing that inflation is currently above target and trending higher. She highlighted that tariffs have recently contributed to higher goods inflation and warned that prolonged uncertainty regarding tariff policies could elevate inflation expectations. Logan also indicated that while the labor market is gradually slowing and "very close" to maximum employment, a recent rate cut served as "insurance" against a more rapid, non-linear decline. She stressed the critical importance of central bank independence for price stability.
In commodity markets, spot silver declined nearly 3% to $45.9 per ounce, while spot gold fell almost 1% to $3,830 per ounce. This comes as the US Treasury prepares to sell a substantial amount of debt, including $58 billion in 3-year notes, $39 billion in 10-year notes, and $22 billion in 30-year bonds.
The energy sector faced disruption as Colonial Pipeline (COLPIPE) halted operations on all three of its main delivery lines Thursday morning due to unplanned system maintenance, attributed to "computer issues". The company expects to restart operations before noon EDT. Meanwhile, the U.S. Energy Information Administration (EIA) reported that natural gas stockpiles increased by 53 BCF last week, which was below the estimated 66 BCF rise.
In other significant developments, Italian energy company Eni (ENI) agreed to build a $7.2 billion LNG export plant in Mozambique. Additionally, AI startup Perplexity announced it is making its $200-a-month browser free for everyone, a move that could challenge established players in the browser market. IBM (IBM) also unveiled Granite 4.0, described as a hyper-efficient, high-performance hybrid model for enterprise use.
Geopolitical tensions also remained in focus, with news of Hamas accepting a ceasefire proposal, which reportedly created a 4-minute window of opportunity before Brent Oil Futures hit their low. Kremlin spokesman Peskov stated that Europe is impeding the peace process, while Ukraine's Foreign Minister accused Russia of deliberately cutting power at the Zaporizhzhia nuclear plant through a manual disconnection. Fitch Ratings also noted that US banks face climate-related risks even as the regulatory pendulum swings.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.