MMT Chart: S&P Reaches Technical Tipping Point
MMT Chart: S&P Reaches Technical Tipping Point: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- MMT Chart: Steady Targets Amid Rising Technical Risks
- Powell Testimony Takeaways – Policy on “Hold” for Now
- NFIB Shows Fading Optimism Among Small Business Owners
Futures are mixed but little changed and bond yields are flat ahead of today’s critical U.S. CPI release.
Economically, Italian Industrial Production fell -3.1% vs. (E) -0.2% in December which served as a reminder that Europe continues to face significant growth risks.
Traders will be keenly focused on the January CPI (E: 0.3% m/m, 2.9% y/y), and Core CPI (E: 0.3% m/m, 3.2% y/y) release before the bell this morning before focus turns back to Capitol Hill for Powell’s second day of semiannual testimony (10:00 a.m. ET).
A “hot” inflation print is a considerable risk to equities and other risk assets here as hawkish money flows could result in heavy market declines today.
Looking ahead to the afternoon, there is a 10-Yr Treasury Note auction at 1:00 p.m. ET and two additional Fed speakers to watch today: Bostic (12:00 p.m. ET), Waller (5:05 p.m. ET), however CPI and Powell will be the primary market-focus over the course of the session.
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