Summary of Last Session
The Dow Jones hits a new record, while the $S&P 500(.SPX)$ edges slightly lower and the $NASDAQ(.IXIC)$ closes down. $Technology Select Sector SPDR Fund(XLK)$ $Microsoft(MSFT)$ $ $NVIDIA Corp(NVDA)$ $Apple(AAPL)$
$XLK
DJIA: +0.33% to 38,798.23 - S&P 500: -0.09% to 5,021.87 - Nasdaq: -0.30% to 15,942.55
Index Perf
Trading is below average due to the expected absence of many workers following the big game the previous night.
Key Events
CPI
- Investors brace for the latest Consumer Price Index (CPI) report, crucial for monetary policy.
- Expectations for January's annual inflation are at 2.9%, down from December, with a slight monthly growth anticipated.
The Bureau of Labor Statistics releases the consumer price index for January. The consensus estimate is for the CPI to rise 2.9% year over year, half a percentage point less than in December. The core CPI, which excludes volatile food and energy prices, is expected to rise 3.7%, compared with 3.9% previously. The annualized change in the core CPI is at its lowest level since May 2021.
- Fed data shows consumers foreseeing inflation above 2% for the next 12 months.
- Spending on lobbying by major tech companies is increasing, reflecting mounting regulatory pressures.
Market Scenario
Markets remain attentive to the CPI, with expectations of a first reading below 3% for annual inflation, thereby supporting the disinflation trend. However, some Fed officials demand more significant slowing in the real estate and services sectors before considering rate cuts.
Conclusion
As markets react to expectations regarding the CPI and future monetary policies, volatility could increase. Investors will closely monitor upcoming economic and regulatory developments.
Past performance is not indicative of future results. Stock investments carry risks. It is recommended to consult a financial advisor before making investment decisions.
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