4 hours ago - Business
Inflation data could pile more pressure on stocks
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After a wobbly post-election performance last week, investor focus will be back on inflation this week and its implications for the Federal Reserve.
Why it matters: New price data could convince diehard believers in the "Fed put," that the central bank will not, in fact, swoop to steady a stock market battered by the Blue Tsunami's implications for AI.
What we're watching: Consumer Price Index data Tuesday — and producer prices on Friday.
By the numbers: Wall Street analysts expect headline inflation to be up 3.9% over October 2025 levels. (Ex-food and energy would be up 2.7%.)
- The headline PPI index due Friday is expected to be up 6.7% in October, compared with the prior year, showing price pressures continue to build.
Between the lines: The risks to stocks are pretty one-sided.
- If inflation numbers are higher than expected, that could mean a steeper, faster series of rate hikes that could add pressure to stocks.
- But if inflation undershoots expectations, few think that will keep the central bank from lifting rates, as recent jobs data has shown the economy to be quite strong.
