“Good, bad and ugly” outcomes for the April consumer-price index reading.
“Good, bad and ugly” outcomes for the April consumer-price index reading: Tom Essaye, founder of Sevens Report Research, Quoted in Morningstar
Stock market could suffer ‘ugly’ day if April CPI comes in above this level
Tom Essaye, founder of Sevens Report Research, took a look Tuesday at potential “good, bad and ugly” outcomes for the April consumer-price index reading.
So what would provoke an ugly reaction? Essaye puts the threshold at 3.9%.
A core reading at or above that threshold would be likely to spark a “solid selloff,” further entrenching the idea that inflation remains sticky and rates will be higher for longer, Essaye wrote. That has the potential of undoing much of the rally seen over the last two weeks, as investors would likely scale back rate-cut expectations, penciling in just one cut in December.
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