What Happened:
Shares of data warehouse-as-a-service Snowflake (NYSE:SNOW) jumped 5.23% in the morning session after the Commerce Department reported that the personal consumption expenditures price index, a measure of inflation that the Fed monitors closely, rose by 5% in February compared to the same period last year, below expectations. This demonstrates that inflation is softening and may mean to the Fed that there is less urgency to hike rates further.
What is the market telling us:
Snowflake's shares are quite volatile and over the last year have had 66 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Snowflake is up 11.2% since the beginning of the year, but at $150.81 per share it is still trading 37.5% below its 52-week high of $241.23 from April 2022. Investors who bought $1,000 worth of Snowflake's shares at the IPO in September 2020 would now be looking at an investment worth $593.63.
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