Wall Street economists expect the Consumer Price Index (CPI) to rise 2.7% annually in November, with a 0.3% month-over-month increase. The Federal Reserve’s interest rate decision on December 18 will be influenced by these reports. Markets are pricing in an 85% chance of a rate cut, with investors closely watching for any signs of inflationary pressure.
The labor market also released data last week, showing 227,000 new jobs created in November and an unemployment rate of 4.2%. However, economists believe the labor market remains strong, despite some concerns about inflation.
Tech stocks have been performing well, with all seven companies in the Magnificent Seven index closing at record highs on Friday. Many analysts believe this trend will continue into next year, driven by solid earnings estimates and a broader bull market.
The Fed’s rate decision is seen as a key event for the markets heading into year-end. Investors are watching for any signs of inflationary pressure or concerns about the economy slowing down. However, most analysts still expect a rate cut on December 18, which would support the ongoing rally in stocks.
In other news, earnings reports are scheduled for several companies this week, including Adobe and Macy’s.
Source: https://finance.yahoo.com/news/2-key-inflation-prints-loom-ahead-of-fed-rate-cut-decision-what-to-know-this-week-124924844.html