This week, particularly on Tuesday, the November consumer price index report is set to be unveiled, along with the latest updates on inflation in the U.S. economy. On that very same day, the United States Federal Reserve will hold its next meeting to determine the interest rate adjustments for the following months.
Before these events, stock prices have experienced a slight increase as traders strive to remain positive about the upcoming reports. Many are optimistic that the latest consumer price index figures will indicate a drop in inflation, leading to a potential reduction in interest rate hikes that have been impacting the market recently. The Dow gained 126 points, a 0.4% increase, the S&P 500 saw a 0.1% rise, while the Nasdaq declined by 0.1%.
40 Stocks That Have Surged The Most From Their Lowest Points in the Past 52 Weeks: pic.twitter.com/UnKUc3pznN
— Pankaj Parekh (@DhanValue) December 12, 2022
“The financial situation has significantly improved since the release of October’s CPI data last month, so the Fed is likely to reconsider during the December FOMC meeting,” stated Cliff Hodge, Chief Investment Officer at Cornerstone Wealth, in a CNBC report addressing investors. “We believe that the markets are too relaxed about interest rates post the first quarter, and we anticipate Powell adopting a more cautious stance and projecting higher rates for an extended period compared to the current expectations in the futures markets.”
Investors are anticipating a positive shift before Christmas, or else the market may be headed for a notably lackluster end to 2022.
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