Expect stocks to rally after this week’s CPI report, Fundstrat’s Lee says
Investment strategy,Stock markets,Prices,business news
#Expect #stocks #rally #weeks #CPI #report #Fundstrats #Lee
Wednesday’s March consumer price index report could play a pivotal role in the next stage of the stock market rally, according to Fundstrat’s Tom Lee. “Bottom line: We see probabilities favoring a rally in stocks post-March CPI report,” the head or research wrote in a note to clients Sunday. Recent data trending above expectations and higher oil prices have fueled worries on Wall Street that inflation is reaccelerating after a period of downward momentum, Lee noted. But the March inflation print should represent the first solid reading of the new year, given that January inflation numbers typically struggle with poor seasonal adjustments, made worse by “the pandemic and subsequent wild goods prices swings,” while February is distorted by “residual seasonality issues – meaning, price increases in January spill into February,” Lee wrote. “Thus, March is first clean CPI print of 2024,” he said. “Or rather, we view the March CPI report as more representative of the actual trend in inflation.”
Investment strategy,Stock markets,Prices,business news
#Expect #stocks #rally #weeks #CPI #report #Fundstrats #Lee
To provide the best experiences, we and our partners use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us and our partners to process personal data such as browsing behavior or unique IDs on this site and show (non-) personalized ads. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Click below to consent to the above or make granular choices. Your choices will be applied to this site only. You can change your settings at any time, including withdrawing your consent, by using the toggles on the Cookie Policy, or by clicking on the manage consent button at the bottom of the screen.