What Yesterday’s Hot CPI Means for Markets
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What’s in Today’s Report:
- What Yesterday’s Hot CPI Means for Markets
Futures are little changed following a night of mixed economic data and as markets await more details on reciprocal tariffs.
Investors are waiting to learn which countries and what products will be subject to reciprocal tariffs and until that happens (maybe today or Thursday) that uncertainty will be a market headwind.
Economically, UK and EU data was slightly better than expected (UK GDP and Euro Zone IP both beat estimates).
Obviously tariff news could be market moving if we get any specifics on reciprocal tariffs but beyond that, focus will remain on economic data and due to yesterday’s hot CPI, PPI (E: 0.3% m/m, 3.2% y/y) will be the most important report today. PPI is viewed as a loose leading indicator for CPI, so if PPI runs “hot” look for another rise in Treasury yields and a headwind on stocks. The other notable economic report today is Jobless Claims (E: 217K) and markets will want to see more Goldilocks readings (so slightly above expectations).
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