Next CPI Inflation Report Could Improve 2025 Fed Rate Cut Expectations
1. Equity and bond prices declined post-January jobs report. 2. Investors anticipate U.S. tariffs amid potential easing inflation.
FAQ
Why Bearish?
The anticipation of tariffs typically leads to market uncertainty, impacting S&P 500 adversely. Historical tariff announcements have resulted in immediate market drops, showcasing investor wariness.
How important is it?
Market reactions following economic indicators and tariffs can significantly sway investor sentiment and overall S&P 500 performance.
Why Short Term?
Immediate market reactions to economic data and tariff speculation usually last only a few weeks. Previous instances, like tariff fears in 2018, led to quick volatility.