PPI repeat of CPI, or whiff of deflation
|S&P 500 properly reacted to CPI coming in below expectations, for less than an hour and without immediate vigor across the board. Tech being the star performer, Russell 2000, KRE and interest rate sensitive plays tanking.
No rate cut tantrum? As if the tariff impact on inflation was over (Powell insists it‘s not) while I was clear yesterday premarket to clients about rents to play a positive role in bringing inflation down.
Market decided to focus on prior month‘s readings, and not on the figure (core especially) to come in lower than expected, leading to a kneejerk reaction that‘s slowly being remedied premarket. At the same time, SPY market breadth is very unappealing, and McClellan summation index turned down following yesterday‘s close.
Today‘s packed video gives way more color to all of these, talking my Sunday call for USD to rise, oil price decline, and how to approach today‘s session in equities.
PPI coming in at 0.0% is a great figure, good for companies‘ earnings… will be reflected in stock prices later today.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.