Last week’s Consumer Price Index or CPI report, which tracks the price of a package of goods, had its highest year-over-year reading in more than 30 years. This report made national headlines and resulted in interest rates spiking higher, with many investors pulling forward that first interest rate hike by the Federal Reserve. This all resulted in two-day higher volatility, lower stock market reaction.
As mentioned last week, the key question is whether that rate of change growth in inflation will peak during this quarter.
For the week ahead, we could have another rollercoaster of a week for stocks. It is options expiration week and as noted many times in these videos it tends to result in a down week for stocks. We also get retail sales this week and a miss could result in news headlines focusing on a consumer that is losing confidence and cutting back on spending because of inflation.
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