We finally have the inflation data we’ve been waiting for, and the markets are already reacting — and more in Wednesday’s stock market recap.
The consumer price index (CPI) rose 9.1% on a year-over-year basis for the month of June, coming in above both estimates of 8.8% and May’s reading of 8.6%.
At the time of this writing, the Nasdaq fell 1.33% and the S&P 500 dropped almost 1% on the news.
We’ll want to keep an eye on the bond market to see how it reacts.
If the bond market goes down, it means the economy is actually doing better than we thought… But if the bond market rallies, that means the economy is in worse shape than we thought.
A rising bond market means there’s less of a chance of the Federal Reserve increasing rates, which would mean we’re closer to a recession than we thought, and the Fed backing away from raising rates in an attempt to avoid a recession.
In this morning’s stock market recap video, I’ll reveal more details on the CPI report… the key levels to watch out for… major assets that will move and why… the top stock to trade and the weakest stock to fade right now… how to interpret the long bond in light of the volatility… plus the top sectors to watch.
*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk.
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