Outlook 02/12: Stock futures dropped after January’s consumer prices reading raised fears about inflation reigniting and caused interest rates to spike. January’s consumer price index jumped 0.5% for the month, putting the annual inflation rate at 3%. Those figures were much higher than estimates from economists for increases of 0.3% and 2.9%. Following the jump in CPI, investors will likely be paying closer attention to the day two testimony from Federal Reserve Chair Jerome Powell’s before Congress. He speaks to the House Committee on Financial Services on Wednesday. Powell testified Tuesday to the Senate Banking Committee that the Fed was in no hurry to make further interest rate cuts. The latest data makes it less likely the Fed will resume its rate-cutting campaign anytime soon and now raises concern perhaps the next move could even be a hike.
ESH25 (MAR2025): YVAH 6096 YPOC 6087 YVAL 6076 GAP 6092
/ES Plan: Yesterday market closed bullish (PBT 6116), but overnight, after CPI data, looks bearish moving well below previous value/range, so these're the opening and initial balance options for current session:
