#CPI&JoblessClaimsWatch

Here's what's happening with CPI and Jobless Claims ¹:

CPI (Consumer Price Index)

- The CPI inflation report is out, showing a 2.8% annual increase, which is lower than expected.

- This cooling inflation could lead to a Federal Reserve rate cut, potentially boosting the stock market.

Jobless Claims

- Initial jobless claims rose less than expected, indicating a relatively stable labor market.

- However, some analysts see this as a sign of potential economic weakness, which could impact monetary policy.

Market Impact

- The S&P 500 paused near a record high after the CPI and jobless claims data.

- Some traders expect the Federal Reserve to cut interest rates soon, which could boost the economy ².

Key Economic Events to Watch

- *Producer Price Index (PPI)*: Expected to show a 0.3% monthly growth, which could indicate future inflation trends.

- *Federal Open Market Committee (FOMC) minutes*: To provide insights into the Fed's policy discussions and potential rate cuts ¹.