That CPI data that will be released tomorrow will determine the short-term direction of the market.
Market on its toes for an inflation report that could change everything
- Markets will be closely watching the Consumer Price Index report Wednesday in which the government gauges the level of price pressures.
- Economists expect January to show a 1.9 percent increase in the headline number including food and energy.
- Investors worry that inflation will read to aggressive rate hikes that will choke off the bull market in stocks and bonds.
The US reports January CPI figures tomorrow. The market seems especially sensitive to it. The main narrative is that it is an inflation scare spurred by the jump in January average hourly earnings that pushed yields higher and unhinged the stock market.