Wall Street is Braced for Massive Inflation Numbers Wednesday Morning.
Here’s What Numbers Could Cause Stocks to Sink or Soar
Quick Read – SPY fell 3% and QQQ 5% this week; a hot CPI print could push the 10-year yield past 4.67% and kill remaining Fed cut hopes. – Watch core CPI month-over-month: anything annualizing above 3% locks the Fed on hold, while a softer print reopens the rate-cut door. – It sounds nuts, but SoFi is giving new active invest users up to $1,000 in stock for a limited time, and all it takes is a $50 deposit to get started. See for yourself (Sponsor) At 8:30 a.m. ET this morning, the Bureau of Labor Statistics releases the May Consumer Price Index.
There has not been a more loaded macro release in months. The Federal Reserve has already cut its policy rate 75 basis points from last September’s peak, to an upper bound of 3.75%, and the bond market is pricing the next move on the basis of exactly the number that crosses the wires in about 75 minutes. Equities went into this print bruised: the SPDR S&P 500 ETF (NYSEARCA:SPY) is down 2.96% over the past week, and the Nasdaq-100 proxy Invesco QQQ Trust (NASDAQ:QQQ) is off 5.14% over the same stretch.