Reviewed by Gotrade Internal Analyst
The U.S. stock market closed at an all-time high on Monday, seemingly brushing off the heating political drama in Washington. Now, investor focus shifts entirely to the Consumer Price Index (CPI) data release scheduled for this afternoon.
This mix of record-breaking stock prices and economic uncertainty has created a crucial "wait-and-see" situation. You need a solid game plan to handle the potential volatility tonight—whether the market continues its rally or takes a sharp dip.
Key Takeaways
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CPI data is set to release at 17:00 WIB with an expected 2.7% year-over-year increase.
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The DOJ's probe into Fed Chair Jerome Powell is sparking worries about central bank independence.
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Strategic AI and retail partnerships are driving specific movers like Walmart and Nvidia.
The Fed Sentiment & Inflation Data
Even though major indices are hitting records, the report regarding a criminal probe into Fed Chair Jerome Powell has become the main talking point. Powell called this move a "pretext" to force him out, which could mess with future interest rate policies.
Amidst this political noise, economists project the CPI data will show inflation at 2.7% year-over-year. A "hotter" number than expected could make it tough for the Fed to cut rates, especially under the current political pressure.
Retail and Tech Sector Moves
The retail sector caught a fresh breeze after Walmart Inc. was reported to be joining the Nasdaq 100 index on January 20. The retail giant also announced an integration with Alphabet Inc.'s Gemini AI to level up their customer shopping experience.
Over in tech, the convergence between biotech and AI is getting deeper. NVIDIA Corporation and Eli Lilly and Company announced a joint AI lab to accelerate drug discovery—a bullish signal for the long-term growth of both industries.
Strategy for Tonight's CPI Data
High volatility is expected right around the U.S. market open tonight. With CPI data dropping so close to the bell, tech stocks like Meta Platforms, Inc. are in a sensitive spot regarding any inflation surprises.
Don't let your portfolio drift without a clear direction. This is your chance to see firsthand how the pros turn raw economic data into calculated trading decisions, rather than just guessing the market moves solo.
Make the smart move now. Watch the Gotrade analyst team's live strategy in responding to the inflation data's impact on Costco Wholesale Corporation and Target Corporation in our Live Trading session.
