The stock market could be on the verge of a significant shift, with a crucial inflation report potentially triggering the next major sell-off, according to Tom Lee, the head of research at Fundstrat.
What Happened: The February Consumer Price Index (CPI) report, scheduled for release on Mar. 12, could be a turning point for the market in 2024, reported Business Insider. The report will indicate whether the Federal Reserve is likely to cut interest rates.
“To us, this is also the decision point for markets in 2024. If the Feb CPI is ‘hot,’ even if for statistically wrong reasons, we think markets could become anxious,” said Lee.
The February inflation report follows a January CPI report that was hotter than expected. Lee pointed out that some of the seasonal factors that drive up prices in January could spill over into February.
Should the February CPI report come in higher than anticipated, it could put the Fed in a difficult position and lead to a more hawkish stance from the central bank. This could potentially trigger the most significant sell-off in the stock market since its ...