Upcoming CPI report could increase market volatility and concerns about rising Treasury yields

From Investing.com: 2025-01-12 09:01:42

U.S. inflation data expected next week may affect stock investors and increase concerns about rising Treasury yields and uncertainty over Trump’s policy plans. Stock market has declined 1% in 2025 so far, with fears of rising inflation impacting equities and Fed’s interest rate cuts. Monthly CPI report on Jan 15 could trigger market volatility. Markets delayed expectations for a rate cut until June after strong U.S. jobs report, with payrolls exceeding estimates at 256,000 and unemployment rate at 4.1%. The December CPI is projected to show a 0.3% increase. Fed’s latest meeting minutes revealed worries about Trump’s policies affecting inflation. A hot CPI number could raise Treasury yields and impact stocks, with potential broad fallout. Busy weeks ahead for markets with major banks’ earnings results, S&P 500 earnings expected to rise nearly 10%, and President-elect Trump taking office on Jan. 20. Investors await Trump’s actions on tariffs and immigration, which could influence market movements.



Read more at Investing.com: Inflation report could rattle markets after bond yields climb By Reuters