Reviewed by Gotrade Internal Analyst
Global financial markets are on high alert ahead of the US inflation data release tonight. The anxiety over AI valuations is creeping back in, but it’s being held in check by optimism from the chip sector.
Key Takeaways
- Tonight's US CPI & Jobless Claims data will define the Fed's direction.
- Micron's bullish projection balances the negative sentiment from the Oracle deal fallout.
- Bank of Japan signals a rate hike, diverging from global trends.
The market got the jitters after Blue Owl Capital pulled the plug on a $10 billion data center funding deal with Oracle. But the mood improved after Micron Technology, Inc. released a strong revenue forecast, driven by the massive demand for AI infrastructure.
Investors are now laser-focused on the Consumer Price Index (CPI) data dropping tonight. This report is the crucial indicator for the Fed to decide its next interest rate move in this dynamic economy.
| Time | Cur. | Imp. | Event | Actual | Forecast | Previous |
|---|---|---|---|---|---|---|
| 09:00 | USD | High | U.S. President Trump Speaks | |||
| 20:30 | USD | High | Core CPI (MoM) (Nov) | 0.3% | 0.2% | |
| 20:30 | USD | High | CPI (MoM) (Nov) | 0.3% | 0.3% | |
| 20:30 | USD | High | CPI (YoY) (Nov) | 3.1% | 3.0% | |
| 20:30 | USD | High | Initial Jobless Claims | 224K | 236K | |
| 20:30 | USD | High | Philadelphia Fed Manufacturing Index (Dec) | 2.5 | -1.7 |
Global Central Bank Policy Divergence
Global monetary dynamics are getting complex. The Bank of Japan is signaling a rate hike, going against the flow of other developed nations. Meanwhile, the Bank of England is predicted to cut rates as inflation in the UK slows down.
This macro situation is going to directly impact the volatility of big tech stocks like NVIDIA Corporation and Alphabet Inc. tonight. The retail sector is also taking center stage, given its sensitivity to consumer purchasing power reflected in the inflation data.
Economic Data Deep Dive & Stock Opportunities
We’ll be doing a deep dive into the price action of retail giants like Target Corporation and Costco Wholesale Corporation right as the data comes out. We’re also eyeing potential hedging plays in gold commodities via Kinross Gold Corporation amidst the geopolitical uncertainty.
The Gotrade analyst team will help you craft the best analysis and trading strategy to anticipate the volatility ahead of the CPI and Jobless Claims release. Get the technical prep for these picks so you’re ready to execute your moves when the data drops.
