Foretelling CPI and SPY reaction
|S&P 500 shook off initial hesitation, and rose on low but not negative PPI figures. Rate cut odds increased meaningfully, bond yields retreated, but Russell 2000 didn‘t really surge. Why and what‘s going on with discretionaries – how come that Nasdaq was among the best performing sectors yesterday?
All valid questions that I answer in the following text – enough said that the move allowed extension of recent swing and intraday gains.
Today‘s CPI will serve more volatility, after we newly have calm in Japan as BoJ is being made to explain rate raising before Parliament, and Iran attack risk has receded. Fear is either too hot or too cold inflation figure (headline and core) today, and I‘m laying out further where I see the data coming, and its impact on equities.
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