1. December inflation rose 0.4%, impacting consumer finances. 2. Annual CPI increase stood at 2.9%, slightly above November's 2.7%. 3. Core prices grew 0.2% monthly and 3.2% annually, indicating persistent inflation.
Higher inflation may prompt the Federal Reserve to raise interest rates, affecting market stability. Past increases in inflation have correlated with downturns in equity markets.
Inflation data significantly influences interest rate decisions, directly impacting S&P 500 performance.
Immediate investor reactions to inflation data can lead to volatility. Historically, the market often reacts swiftly to new economic data.