Market Extra: CPI days have been among the most volatile for stocks this year. Here’s what to expect ahead of Tuesday’s report

by | Dec 13, 2022 | Stock Market

Many investors are hoping that beaten down U.S. stocks will finish 2022 with a “Santa Claus rally” after the S&P 500 logged back-to-back monthly gains for the first time in more than a year in October and November, according to FactSet data. But first, they need to make it through a week rife with potentially confidence-shaking events. Chief among them: the release of the November consumer-price index data Tuesday morning at 8:30 a.m. Eastern.

The CPI data aren’t the only potentially market-moving event this week — far from it: On Wednesday afternoon, the Federal Reserve is expected to hike its benchmark policy rate by 50 basis points. After the decision on interest rates is released, Chairman Jerome Powell will elaborate on the Fed’s views in statement and take questions from reporters, which could impact markets. The Fed will also release updated economic projections, including its “dot plot” of forecasts for changes in the Fed funds rate. See: 5 things to watch when the Fed makes its interest-rate decision Beyond the Fed, there’s a smattering of other central-bank meetings set for this week, including the European Central Bank and Swiss National Bank. More rate hike are expected there, too. With expectations for a 50 basis point move from the Fed already baked into markets, market strategists see the CPI report as the wild card — unless the Fed breaks with precedent and hikes interest rates by more (or less) than the 50 basis points that Powell hinted at during a speech at the Brookings Institution just before the st …

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