Stock market today: Dow pops, Nasdaq slips as focus turns to CPI inflation report
Published On Jan 14, 2025, 4:51 PM
US stocks closed mixed on Tuesday as investors reacted to inflation reports indicating prices rose less than expected in December. The Producer Price Index (PPI) showed a year-over-year increase of 3.3%, which is less than anticipated. Attention is now focused on the upcoming Consumer Price Index (CPI) report, expected to show a similar trend. Additionally, there are indications that the Trump administration may implement a gradual approach to tariff increases. This could potentially ease inflationary pressures but may complicate the Federal Reserve's efforts to manage inflation. The Dow Jones increased by about 0.5%, the S&P 500 rose slightly, while the Nasdaq Composite fell by about 0.2%.
Stock Forecasts
SPY
Positive
With the PPI showing lower-than-expected increases in wholesale prices and consideration of gradual tariffs which may reduce immediate inflationary pressures, investor sentiment may improve in the short term. The upcoming CPI report is crucial, and if it mirrors the positive trend of the PPI, this could bolster stock performance, particularly for companies sensitive to inflation.
META
Negative
If the CPI report reveals stickier inflation than anticipated, or if concerns about the Trump's tariff policy affecting market dynamics arise, it could lead to a bearish sentiment in the markets, particularly affecting multinational corporations like Meta and others with significant international exposure. Keep an eye on downward pressure following these reports.
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