2 key inflation prints loom ahead of Fed rate cut decision: What to know this week
Published On Dec 8, 2024, 7:49 AM
Upcoming inflation reports, particularly the Consumer Price Index (CPI) and Producer Price Index (PPI), are anticipated to play a crucial role in the Federal Reserve's decision-making regarding interest rates. As inflation figures show slight increases, the Fed is expected to cut rates by a quarter percentage point at its December meeting. The performance of major tech stocks continues to be strong, with the Magnificent Seven leading recent market rallies, while concerns linger about the potential impacts of inflation on future rate cuts.
Stock Forecasts
SPY
Positive
With the upcoming CPI report expected to show a slight increase in inflation, any economic surprises could impact investor sentiment. However, if inflation remains manageable, tech stocks may continue their upward trajectory. The Fed's readiness to cut rates could further benefit the market, particularly tech shares that continue to outperform. Overall, the tech sector appears robust as companies maintain strong earnings forecasts.
TQQQ
Positive
The expected quarter-point rate cut from the Fed could create favorable conditions for growth-oriented sectors, particularly technology. If inflation prints support continued easing, the likelihood of sustaining this growth trend increases, especially for major players in the tech sector.
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