Today's Market Action from CPI & PPI - 20th Feb, 2024
Today is Feb 20th, 2024 (Tuesday). In today's episode we will talk about the market action from CPI and PPI last week:
If you followed the markets today, you'd have noticed the market level indices closed down for the day. At a high level, there appears to be a few factors at play in the market:
1) The market has remained hot for the last few weeks, and needed to cool down or at least consolidate.
2) NVDA and the AI stocks had been pushing the market up for the last few weeks, and now as the earnings announcement for NVDA approaches, a level of anxiety is starting to set in - what if the market doesn't like their earnings?
3) All of this is happening in the backdrop of two important inflation readings last week coming in hotter than expected - the CPI (or Consumer Price Index) and PPI (or Producer Price Index).
I'll touch upon these two economic indicators later on, but at very high level,
- The CPI measures inflation being experienced by the consumer, while
- The PPI measures inflation being experienced by the producer
Looking ahead, the question in front of the market is - are we looking rate cuts, rate on hold, or is the worst case scenario of rate hikes is at play? What do you think?
Credits:
Disclaimer:
Please note this is not an investment advice. Your investment philosophy shall be based on your risk profile and financial goals. Please seek investment advice from your own investment advisor. This article/podcast has been produced only with the intension of sharing observations from research.
Copyright:
Copyright @ Inceptone Inc., 2024
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