STLA - What To Expect After March's Hot Inflation Report
2024-04-05 14:45:56 ET
Summary
- Markets are volatile ahead of next week's inflation report, but bullish sentiment is firmly in place.
- CPI data is unlikely to change the Fed's dovish (interest rate cut) position unless prices rise significantly.
- Rising energy prices and inflation in March are expected, but markets are more likely to rise or not react than panic.
- Bullish on insurance, oil and gas; bearish on EV and the used vehicle sector.
Other than markets falling the most in a year starting at 1 p.m. yesterday ahead of the jobs report, bullish sentiment continues. Next week on April 10 at 8:30 a.m., the Bureau of Labor Statistics will release the Consumer Price Index for March 2024. Given Federal Reserve Chair Jerome Powell said the Central Bank still expects to lower rates, why should readers react to the CPI data?...
What To Expect After March's Hot Inflation Report