According to Odaily, the Consumer Price Index (CPI) report for November in the United States is scheduled for release on Wednesday. Economists anticipate a year-over-year increase of 2.7%, slightly above October's 2.6%. Bank of America strategists suggest that this inflation data could significantly influence the U.S. stock market, especially given the muted market reactions to CPI readings in recent months. They noted that a stronger-than-expected CPI could reignite volatility, particularly after a 5% rebound in the stock market following the elections.
Moreover, the inflation figures are expected to play a crucial role in shaping the Federal Reserve's upcoming interest rate decisions. An unexpected rise in inflation could potentially lead to an earlier pause in the Fed's rate-cutting cycle. According to the CME Group's FedWatch Tool, there is an approximately 86% probability that the Federal Reserve will lower interest rates by another 25 basis points at next week's meeting.