The market is literally on its toes as traders await key inflation data due to be released today. The markets have been volatile for some time now and remained on a low last week, before bouncing back this week. However, nothing can be said about the market as the new inflation data could either send the markets on a high or a low.
All relies on the Consumer Price Index report that will be revealed today, on Wednesday. The key reports could be a breaker for the markets, which have been showing signs of volatility since the last week. Investors are concerned that the inflation, if shows aggressive rate hikes, will definitely choke the bonds and stocks market both.
Inflation has been looming around the corner and could be a major factor for the market correction. True figures that will be revealed today will show which direction the market truly goes.
CPI is always an important indicator of the market and crucial piece of information that affects the markets directly. Today, the stocks have been exhibiting some positivity but they still remain weak as there is a lot of uncertainty looming around. Last week, the markets dealt with a beating but now, today, they have shown some signs of recovery. The true figures will be revealed only when the CPI data is revealed, which the analysts and traders keenly avail for.
Inflation has been in check in the US as the Fed has made sure that it indulges in policies that keep it down. However, there is still uncertainty regarding what to expect as the new data is revealed today. If the inflation is too high or the market rates are high, it could send the markets on a down. However, if the figures are better, the markets could be in for a treat.
So far, the Dow, Nasdaq and S&P 500 have shown some gains but the gains are negligible. They are in fact enough to send some positive vibes in the market that has been struggling now for some time now.