Inflation revival persists as market risk despite CPI-fueled rally ...

20 hours ago · A relatively benign U.S. reading on consumer price increases triggered a sharp relief rally in stocks and bonds on Wednesday, but traders and investors warn that markets are …

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Stock Market Today: Dow Jumps 700 Points, Nasdaq Soars 2.5

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1 day ago · Stocks took a leg higher after the Consumer Price Index (CPI) showed progress toward the Fed's 2% inflation target in December. Prices climbed 0.2% month-on-month on a "core" basis, which strips ...

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Inflation Trap? Stock Market's Near-record Run Faces The Most …

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May 13, 2024 · Inflation in the past three months has been out of whack with the Federal Reserve's goal of achieving a 2% annual rate, with energy and housing costs helping push the …

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CPI Inflation Rate May Be Bump In The Road For S&P 500 Rally

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Nov 13, 2023 · CPI Inflation Rate The core CPI, excluding food and energy, should rise 0.4% in October, Deutsche Bank economists estimate. That would lift the 12-month inflation rate to 4.2%.

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FAQs about Inflation revival persists as market risk despite CPI-fueled rally ... Coupon?

Are markets worried about inflation?

A relatively benign U.S. reading on consumer price increases triggered a sharp relief rally in stocks and bonds on Wednesday, but traders and investors warn that markets are likely to remain anxious about the pace of inflation. ...

Will January's CPI data bring inflation to a heel?

"January's CPI data came in hotter than expected and renewed concerns about how quickly inflation could be brought to a heel," Wells Fargo's team of economists led by Jay Bryson wrote in a research note on Friday. Investors can expect fresh data on inflation, retail sales, and consumer sentiment in the coming week. ...

What will the Fed's March 20 CPI report tell investors?

In the week ahead, investors will face the final major test before the Federal Reserve's March 20 meeting with the February Consumer Prince Index (CPI) report out Tuesday, which offers an updated look at inflation. Retail sales and consumer sentiment reports will feature on the economic calendar in the back half of the week. ...

Why is high inflation a bad news for stocks?

High inflation is bad news for stocks because it erodes consumers' purchasing power which slows the economy. The Consumer Price Index measure of inflation hit a 40-year high in 2022, which sent the S&P 500 plunging. The trend of rising inflation has officially reversed, and that could trigger a multiyear bull market in the S&P 500. ...

Why does the Fed want to keep the CPI rising?

As I mentioned at the top, the Fed wants to keep the CPI increasing by around 2% each year. In 2022, it rocketed to a 40-year high of 8% due to a mixture of inflationary conditions in the economy: The U.S. government injected trillions of dollars of stimulus into the economy to combat the effects of the pandemic in 2020 and 2021. ...

Is the fed's inflation-fighting strategy counter-productive?

"Getting markets to hear that is key to fixing financial conditions" that have loosened in recent months as inflation data has improved, a move counter-productive to the Fed's inflation-fighting strategy, said Carl Riccadonna, chief U.S. economist at BNP Paribas. ...