Why Tomorrow Could Be a Huge Day for the Stock Market
Early each month, the U.S. Bureau of Labor Statistics (BLS) releases the latest data for the Consumer Price Index (CPI), a benchmark tracking the price movement on a wide range of goods and services that people use every day. Investors monitor the CPI to gauge the current state of inflation, which has been at a 40-year high for most of the year and resulted in aggressive interest rate hikes by the Federal Reserve, which is trying to rein in the high prices currently plaguing the country.
On Wednesday, BLS will release the data for how the CPI trended in July. It has the potential to move markets in a big way. Here's why.
Inflation has been a raging headache for the market this year, leading to a huge sell-off of stocks. The first six months of the year ended up being the market's worst opening half in 50 years. After two years of dulled economic activity and increased savings, consumer demand shot through a cannon in 2022, driving prices higher on almost everything. Supply chain issues and a tremendous amount of liquidity pumped into the economy by the Fed in recent years only added to the storm.
Source Fool.com
