Carlos Figueroa Vaca
ᴜᴘᴄᴏᴍɪɴɢ ᴜ.ꜱ. ᴄᴘɪ ᴅᴀᴛᴀ ᴡɪʟʟ ʙᴇ ᴋᴇʏ ꜰᴏʀ ᴀ ᴘᴏᴛᴇɴᴛɪᴀʟ ʀᴀᴛᴇ ᴄᴜᴛ On Wednesday, June 10, inflation data for May will be released in the United States. Economists expect the consumer price index to rise 4.2 percent year-over-year, the fastest pace since April 2023 and well above the Federal Reserve’s 2 percent target, raising the odds of further interest rate hikes. This report is particularly important because it will be the final inflation reading before the Federal Reserve's monetary policy meeting on June 16–17. If inflation comes in above market expectations, it would likely eliminate any remaining chance of an interest rate cut during the first half of 2026. Last Friday, markets fell sharply, especially in U.S. equities, including the $SPX500 , Nasdaq, and $GOLD.24-7 . The selloff was driven primarily by expectations regarding Federal Reserve policy. The market is increasingly pricing in the possibility that there will be no rate-cutting cycle throughout 2026. According to the FedWatch Tool from CME Group, there is only a 30% probability of a rate cut by December 2026. In other words, the market may be signaling that interest rates will remain at their current 3.50%–3.75% range throughout the year. President Donald Trump commented over the weekend following Friday's sharp decline in the S&P 500, arguing that investors should not be selling when the economy remains relatively strong. He also stated that the U.S. government wants to invest in technology companies and become more involved in the sector. Those remarks helped lift the S&P 500 during early trading on Monday, although the index had not yet recovered the full 2.6% loss it suffered on Friday. Carlos $NSDQ100 $DJ30
Not investment advice. The author may have financial interests in the mentioned instruments.
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