Core PPI data arrives Thursday at 8:30 am, followed by high-impact CPI and Michigan Consumer Sentiment on Friday at 8:30 am and 10:00 am respectively. These metrics are vital as the market debates the Fed's next rate move amid cooling inflation signs. Wednesday also features ADP employment averages at 8:15 am. Expect significant volatility in Treasury yields and equities if CPI surprises, as traders weigh recession risks against potential easing cycles.
Prepare for sharp moves in $SPY and $QQQ during Friday morning's CPI release. Focus on core inflation components to gauge the Fed's terminal rate path. Tighten stop-losses before 8:30 am and monitor consumer sentiment for signs of economic resilience.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.