Markets & Investing
Week Ahead: October Inflation Report Tests Wall Street's Bets on a December Rate Hike
Futures point to a roughly 80% chance the Fed raises rates next month, and Tuesday's CPI could seal it.
By DOUGLAS PARKStaff Correspondent · NEW YORK · Nov 8, 2:00 PM · 1 min. read
After a week that delivered both a record rally and a brutal sell-off, Wall Street turns to inflation.
The Labor Department releases the October consumer price index on Tuesday. After Friday's strong jobs report, fed fund futures pointed to roughly an 80% chance the Federal Reserve raises rates at its Dec. 8-9 meeting, Reuters reported.
The Fed held steady in October after raising rates in September for the first time in three years. Investors expect about two more quarter-point increases in total this cycle.
The stakes are high for a jittery market. The Nasdaq ended Thursday nearly 12% below its Oct. 6 record, in correction territory, on fears that Democratic wins would slow the AI data-center build-out. One State Street strategist called it "a fragile momentum trade".
Earnings from CoreWeave, Applied Materials and Cisco Systems will also test the AI story.
The bottom line: a hot inflation number would make a December hike close to certain. A cool one could give stocks room to breathe.
Sources
- Reuters via Khaleej Times: Wall St Week Ahead: As tech swoon roils market, US inflation data on tap (link)
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