Critical CPI inflation data arrives Wednesday at 8:30 am, followed by high-impact Retail Sales and PPI on Thursday at 8:30 am. Tomorrow, Friday, features Michigan Consumer Sentiment at 10:00 am. With the Fed Beige Book due Wednesday at 2:00 pm, markets are hypersensitive to cooling price pressures. Expect significant volatility in Treasury yields and equities if CPI deviates from forecasts, as traders gauge the likelihood of aggressive rate cuts amid ongoing IMF global policy meetings.
Prepare for sharp reversals surrounding Wednesday's CPI print; a hot reading may crush pivot hopes. Monitor Thursday's Retail Sales for signs of consumer exhaustion. Use tight stops on index futures during the 8:30 am data releases.
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.