Stocks Week Ahead: Key Data Could Test the Fed’s 2% Inflation Narrative

The CPI is expected to show a 0.3% m/m increase, up from 0.2% last month, while core CPI is also projected to rise by 0.3% m/m.

This may indicate a rising funding cost and that the market is beginning to experience some form of strain. If these pressures persist or worsen, it could trigger a deleveraging event as costs become unsustainably high. Additionally, primary dealer repo activity has surged recently, indicating an increase in equity-backed repo agreements, where equities are used as collateral to raise cash. This could be a sign of growing liquidity strain.

This is further amplified by the fact that, based on metrics such as price-to-book, price-to-earnings, price-to-sales, and dividend yield, this is likely one of the most expensive markets of the modern era.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Nvidia's Earnings Were Likely Not Good Enough to Sustain an Overextended MarketStocks Analysis by Michael Kramer covering: NVIDIA Corporation. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Volatility May Be Returning to a Stock Market Near YouStocks Analysis by Michael Kramer covering: S&P 500, CBOE Volatility Index, Iog PLC. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Three global stocks stocks to own in 2025, according to BarclaysBarclays named 'overweight-rated stocks in which our analysts have high conviction in 2025 and see value in owning on an individual basis.'
Source: CNBC - 🏆 12. / 72 Read more »

CNBC Daily Open: U.S. stocks start December chilly; Korea stocks tumble on political chaosDecember may have triggered the thawing of Mariah Carey, but stocks are beginning the month chilly, though unlikely they’ll remain in permafrost this…
Source: NBCNewYork - 🏆 270. / 63 Read more »

Wall Street stocks end lower after inflation data, tech stocks push Nasdaq downWall Street stocks end lower after inflation data, tech stocks push Nasdaq down
Source: Investingcom - 🏆 450. / 53 Read more »