Critical CPI inflation data arrives Wednesday at 8:30 am, setting the tone for Fed rate expectations amid cooling price pressures. Thursday features high-impact Core PPI at 8:30 am and Fed speeches from Hammack and Barkin. Friday brings heavy volatility with Retail Sales at 8:30 am and Michigan Consumer Sentiment at 10:00 am. Traders are monitoring if softening data justifies a September pivot. Expect significant price action across equities and the dollar during these morning releases.
Position for heightened volatility during Wednesday's CPI and Friday's retail data. If inflation prints lower than expected, look for a bullish breakout in growth stocks as yields retreat. Conversely, strong retail numbers may bolster the "soft landing" narrative, supporting cyclical sectors.
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.