August CPI Preview: Investors Brace For Inflation Uptick, Headache Looms For Powell
Portfolio Pulse from Piero Cingari
The August consumer price index (CPI) report is expected to show a rise in inflation, with the headline CPI projected to climb from 3.2% in July to 3.6% in August. The core CPI, excluding energy and food, is expected to decline from 4.7% to 4.3%. The main driver behind the inflation increase is energy prices, with a 5.9% surge in energy costs. Market sentiment suggests that the Federal Reserve will not raise interest rates in September. If the CPI report meets or falls short of expectations, ETFs tracking major U.S. stock market indices, such as SPY, QQQ, and DIA, may react positively.
September 08, 2023 | 7:25 pm
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POSITIVE IMPACT
The SPDR Dow Jones Industrial Average ETF (DIA) may react positively if the CPI report meets or falls short of expectations.
The DIA ETF tracks the Dow Jones Industrial Average index, which is sensitive to changes in inflation and interest rates. If the CPI report meets or falls short of expectations, it could boost investor sentiment and lead to a positive reaction in the DIA ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) may react positively if the CPI report meets or falls short of expectations.
The QQQ ETF tracks the NASDAQ 100 index, which is sensitive to changes in inflation and interest rates. If the CPI report meets or falls short of expectations, it could boost investor sentiment and lead to a positive reaction in the QQQ ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) may react positively if the CPI report meets or falls short of expectations.
The SPY ETF tracks the S&P 500 index, which is sensitive to changes in inflation and interest rates. If the CPI report meets or falls short of expectations, it could boost investor sentiment and lead to a positive reaction in the SPY ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80