"The Fed is on hold. Investors feel a little reprieve that [inflation data] didn't come in higher, which could make people start thinking about a rate-hike scenario."
The second-straight increase in core capital goods orders points to stabilization in equipment investment, which has been a drag on GDP in recent quarters.
Fed officials are increasingly voicing concern that high borrowing costs may not rein in demand, increasing anxiety that the central bank may raise rates further.
In contrast to recently released economic data, Fed districts report seeing weakness in some areas of consumer spending and smaller profit margins for businesses.