CPI Better Than Expectations - The Year of the Bull Begins
The Consumer Price Index (CPI) numbers are in! Here's the breakdown:
- Headline CPI: +2.9% YoY (Forecast: +3.0%) ✅ Better than expected!
- Core CPI: +3.3% YoY (Forecast: +3.3%) ✅ Met expectations!
- Monthly Headline CPI: +0.3% MoM (Forecast: +0.4%) ✅ Better than expected!
In addition to PPI results of yesterday. This is the best case scenario.
SPY is up to 590 +1.4% pre-market
Bond yield down 0.5
All bets are in, faites vos jeux !
My opinion (not financial advice):
This was expected to be the biggest catalyst for 2025, and if the previous bearish events and sentiments didn't bring the market lower than 570 (when in doubt zoom out), there is nothing to stop a bull market this year. No matter what (volatility ? sure), this year, markets will end significantly higher than it began.
+ Banks start the earnings season with record numbers and signs that the economy is strong strengthen this point.