QQQ - Cool June CPI Sends Yields Lower Rate Cut Odds Increase Further
2024-07-11 09:50:00 ET
Summary
- Deflation occurred in June due to weaker energy prices, leading to the third straight CPI miss.
- The Russell 2000 jumped as interest rates declined markedly after the 8:30 a.m. ET inflation data.
- The Fed is now even more likely to cut rates at its September meeting.
- As jobless claims ticked down, we'll get a read on Retail Sales next week.
June CPI verified down 0.1%, below the 0.1% consensus forecast. It was the largest monthly decline since May 2020. Core CPI came in up 0.1%, also a tenth under what economists were expecting. On a year-on-year basis, headline CPI is now just 3.0%, equaling the low of the cycle, while core is now up 3.3%, the lightest since April 2021....
Cool June CPI Sends Yields Lower, Rate Cut Odds Increase Further