Source: Bloomberg
Author: Srinivasan Sivabalan and Tassia Sipahutar
Article: Original Article
Publication date: Tuesday, December 13, 2022
American stock indices grew on Monday as the traders were calmed by economists’ forecasts about the growth of US CPI by 7.3% in November. If the expectation is fulfilled, it will be the lowest value for 11 months and the fifth value in a row. Even if it won't stop the inflation much higher than the 2% target of the Fed, such a decrease could justify the slowing of monetary policy tightening with a half-point move expected on Wednesday.
“Today’s data on US CPI will give us an idea of how market pricing will conflict with the Fed's long-term rate guidance of tomorrow, undermining any potentially bullish sentiment in the market. That’s why, even if we see a perfect report about CPI and a good market rally today, the sentiment of investors can change very quickly after the Fed's decision on Wednesday”, said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.
Forecast: decrease of S&P after Fed’s meeting on Wednesday
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