Market Musings 10/10/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Is the inflation fight really over?
September CPI caught forecasters off-guard with higher than expected #Inflation.
Overall CPI grew 0.2% M/M above the 0.1% expected and now up 2.4% Y/Y.
Meanwhile, core CPI (which excludes volatile food and energy) rose 0.3% M/M above expectations for 0.2% and now up 3.3% Y/Y.
One of the biggest culprits was car insurance－spiking 1.2% M/M and compounding large increases from the past 2 months. Also, food saw more inflation led by beef, butter and eggs.
While the Fed has shifted focus away from #Inflation to #LaborMarkets, we’ll see if today’s report casts some doubt on that shift.
Markets ended just slightly lower today, but probably more due to higher than expected weekly jobless claims.
As we’ve mentioned before, markets likely focusing more on #LaborMarkets now.
With #RateCuts started, investors are probably a little more forgiving of bumpy #Inflation progress unless there’s a big miss… today’s wasn’t.
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Original Photo by Pixabay.