Data on Inflation to Affect US Equity Markets
Mixed Results from Pre-Market Trading for US Indices
In the pre-market on Monday, the futures for the Dow Jones Industrial Average had a little decline of 0.1% as the new trading week got underway. In contrast, the futures for the S&P 500 index and Nasdaq-100 index gained by 0.1% and 0.4%, respectively.
Earnings Reports from Last Week Affect Market Performance
As businesses released their quarterly profits last week, the US equities market had a mixed bag of outcomes. The trend in core CPI didn’t fall as much as anticipated, which caused a modification to the Consumer Price Index (CPI) inflation readings, which further contributed to the market’s volatility. The S&P 500 rose by 0.2% to 4,090, and the Dow finished up 0.5% at 33,869, while the Nasdaq had its first down week of the year, falling by 0.6% to 11,718.
Inflation Expert Analysis: Key to Market Performance
Senior analyst at Swissquote Bank Ipek Ozkardeskaya claims that “US stocks suffered their worst week since the start of the year.” When the January CPI data is released, it is anticipated that inflation will have slowed from December’s 6.5% annual increase to January’s estimated 6.2% increase. The post-NFP exuberance and the pricing on the goldilocks scenario may quickly vanish, being replaced by dread and turmoil, says Ozkardeskaya, “if US inflation hasn’t lowered or eased sufficiently, or if it abruptly creeps higher.”
Economic Growth and Demand: A Look Back
Analyst David Hughes expresses his fear that the Federal Open Market Committee cannot afford to slack off too soon given the better forecast for GDP. Both the retail sales data due out on Wednesday and the inflation data set, which will be revealed on Tuesday, will be helpful in revealing the strength of the demand.
Key Releases Continue the Earnings Season
Hughes also notes that the earnings season is still in full swing, with lower-key disclosures expected in the hours to come but rising as the week goes on. Tomorrow, major releases include Airbnb and Coca-Cola, with Kraft Heinz following on Wednesday.