Two key inflation prints await investors as rate fears rattle markets: What to know this week
Published On Jan 12, 2025, 7:51 AM
This week, investors are awaiting two significant inflation reports, particularly the Producer Price Index (PPI) on Tuesday and Consumer Price Index (CPI) on Wednesday. Recent economic data indicates stronger-than-expected job growth, which might lead the Federal Reserve to hold off on interest rate cuts for now, with some even speculating potential rate hikes in 2025. The expected CPI for December is 2.9%, a slight increase from November, raising concerns about inflation trends. Retail sales data will also be crucial as it indicates consumer spending levels heading into 2025. Overall, the stock market has experienced declines with worries over high inflation and interest rates persisting.
Stock Forecasts
SPY
Negative
Given the expectation of inflation data and ongoing concerns about interest rates, these indicators could lead to market volatility. If inflation continues to rise or exceeds expectations, it could pressure stocks further downward as the Fed might reconsider rate cuts. Investors might want to remain cautious in this environment.
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