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MarketBeat Minute(2022-12-08)
Equity markets tread water on Wednesday ahead of the PPI report on Friday. The report could reinvigorate fear of inflation and the FOMC and spark another decline in the stock market. The S&P 500 is sitting on key support in the form of the 30-day EMA, a move below that could bring on more selling and drive the index down to the October lows.
The PPI report is not expected to show a decline in inflation and that is bad news. At current levels, PPI is supporting consumer-level inflation and may force the FOMC to hike rates by another 75 basis points at the meeting next week. As it is, the CME FedWatch Tool is pricing in a 75% chance the next hike will only be 50 basis points which is bad enough for the economy by itself.
The PPI report is not expected to show a decline in inflation and that is bad news. At current levels, PPI is supporting consumer-level inflation and may force the FOMC to hike rates by another 75 basis points at the meeting next week. As it is, the CME FedWatch Tool is pricing in a 75% chance the next hike will only be 50 basis points which is bad enough for the economy by itself.
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By MarketBeat MinuteEquity markets tread water on Wednesday ahead of the PPI report on Friday. The report could reinvigorate fear of inflation and the FOMC and spark another decline in the stock market. The S&P 500 is sitting on key support in the form of the 30-day EMA, a move below that could bring on more selling and drive the index down to the October lows.
The PPI report is not expected to show a decline in inflation and that is bad news. At current levels, PPI is supporting consumer-level inflation and may force the FOMC to hike rates by another 75 basis points at the meeting next week. As it is, the CME FedWatch Tool is pricing in a 75% chance the next hike will only be 50 basis points which is bad enough for the economy by itself.
The PPI report is not expected to show a decline in inflation and that is bad news. At current levels, PPI is supporting consumer-level inflation and may force the FOMC to hike rates by another 75 basis points at the meeting next week. As it is, the CME FedWatch Tool is pricing in a 75% chance the next hike will only be 50 basis points which is bad enough for the economy by itself.