Stocks Down Ahead Of Inflation Report Image: Bigstock Stocks closed lower yesterday with all of the indexes in the red. Inflation fears, which are now at 40-year highs, have roiled the market this year. And anxiety is running high ahead of this morning's CPI report, which is predicted to go even higher. While some are suggesting it could be a 'doozy,' others are saying it could very well prove to be the 'high-water mark' for inflation. Regardless, if it's as ugly as some are predicting, it would likely steel the Fed to increase rates by 50 basis points at their next meeting on May 3-4. And maybe a few more times after that, unless inflation does indeed start to tick down afterwards. The CPI report comes out at 8:30 AM ET. Adding to the market's unease is the rise in the Omicron subvariant BA.2. So much so that Philadelphia is reimposing mask mandates for indoor public spaces. That's only 1 of just a few places. And is not part of the official CDC guidelines. But some worry that this could be the beginning of a new set of Covid fears, and what that could mean. Fortunately, BA.2, like Omicron, while highly transmissible, is mild. And since we didn't shut the country down over Omicron, we are not likely to do that with this one. Nonetheless, as Omicron faded, there was hope that we might finally be done with Covid altogether. But it looks like we will be dealing with some form of it, in some way shape or form, for the foreseeable future. In the meantime, the economy remains strong. So do corporate earnings. And we'll see by just how much as earnings season gets underway. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research |
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