US CPI (MoM) (Jan) +0.3% vs +0.2% Est.
Portfolio Pulse from Benzinga Newsdesk
The US Consumer Price Index (CPI) for January increased by 0.3%, surpassing the estimated 0.2%. This indicates a higher than expected inflation rate.
February 13, 2024 | 1:31 pm
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NEGATIVE IMPACT
The higher than expected CPI may lead to concerns about inflation, potentially impacting the SPDR S&P 500 ETF Trust (SPY) as it reflects the broader market sentiment.
Higher inflation rates can lead to fears of increased interest rates, which generally have a negative impact on stock prices, including broad market ETFs like SPY. The CPI exceeding estimates suggests inflation is not cooling as hoped, potentially leading to a more aggressive stance by the Federal Reserve. This can dampen investor sentiment towards equities, including those represented by SPY.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80