Market Musings 12/11/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Markets rebound with November inflation in-line
The S&P rebounded up 0.8% after sliding almost 1% to start the week.
As expected, overall CPI increased 0.3% M/M putting the annual inflation increase at 2.7%.
The core CPI benchmark was in-line with expectations as well. Core CPI also increased 0.3% M/M putting the annual core inflation at 3.3%.
Much of the core inflation pressure appears to coming from services including shelter and travel. Strong holiday travel demand has air fares up 4.7% Y/Y and homes remain elevated up 4.6% Y/Y.
So markets are cheering the in-line print as it likely locks in #RateCuts at the Fed meeting next week.
However, this is the 4th straight month of core #Inflation trending higher than Fed’s 2% target rate－reaccelerating from summer lows. If #Inflation can’t get unstuck soon, #RateCuts may be more muted next year which markets won’t like.
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Original Photo by Pixabay.