April Inflation Data Preview: Why Analysts Expect Price Pressures To Cool
Portfolio Pulse from Piero Cingari
Wall Street anticipates a slight decrease in the April Consumer Price Index (CPI) and core CPI, with expectations of 3.4% and 3.6% year-over-year inflation rates, respectively. Goldman Sachs aligns with these forecasts, highlighting potential trends in car insurance, health insurance, and housing rental costs. The firm also predicts a gradual decrease in core CPI inflation to about 0.2% by the end of 2024. Financial markets, especially the S&P 500 and interest rate-sensitive sectors, show significant reactions to CPI data releases, with non-profitable tech stocks like DraftKings Inc. and DoorDash Inc. being particularly volatile.
May 13, 2024 | 1:43 pm
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DoorDash Inc. is identified as another non-profitable tech stock with high volatility in response to CPI data releases, indicating potential short-term price movements.
Similar to DKNG, DoorDash Inc. experiences significant stock price movements in response to CPI data, suggesting investors should watch for potential volatility around CPI announcements.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
DraftKings Inc. is highlighted for its significant price sensitivity to CPI data, with a historical pattern of volatility based on CPI expectations.
DraftKings Inc.'s stock price has historically been volatile on CPI release days, indicating potential short-term price movements based on the upcoming CPI data.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust is expected to exhibit heightened volatility around CPI data releases, with historical movements of 0.7% on CPI days.
Given the historical data showing SPY's sensitivity to CPI releases, investors should anticipate similar volatility patterns around upcoming CPI announcements.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80