July CPI May Bring Limited Upside Potential For US Stock?

Futures_Pro
2023-08-07

Market participants expect that after the release of CPI data, the broader market may decline. $E-mini Nasdaq 100 - main 2309(NQmain)$

If the CPI data is better than expected, there is an increased probability of interest rate hikes, which could lead to a drop in the US stock market.

On the other hand, if the CPI falls short of expectations, it indicates a weaker economy, and the US stock market could still experience a decline.

In summary, the US stock market has limited upside potential and significant downside potential. However, there is a possibility that the market may experience a temporary upward movement, luring in more buyers (bullish sentiment)

The consensus for July CPI is 3.3%, higher than the June CPI of 3%.

data from Trading economicsdata from Trading economics

As for other assets, $Hang Seng Index - main 2308(HSImain)$ may be also affected by US stock market. That means if $E-mini Nasdaq 100 - main 2309(NQmain)$ dips after CPI, $HSI(HSI)$ will also suffer.

Sep. CPI: Will rate hike pause in November?
September headline CPI is 3.7%, slightly higher than consensus of 3.6%; core CPI is 4.1%, lower than previous data of 4.3%. ---------------------------- Any thoughts on the CPI data? Will rate hike pause in November? How to trade after the CPI report?
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