The stock market burns with CPI.

The stock market burns with CPI.
The December consumer price index, which is said to have been the most important of the data released recently, provided investors with relief with a lower-than-expected decline in core prices.
In particular, housing costs, which have been perceived as the biggest headache so far, fell to their lowest level since January 2022, and real wages also fell, significantly easing inflationary pressures.
Interest rates and the dollar plunged on positive inflation data and turned downward, which was a huge boon for the market.
But if you look at it more soberly, there is not much change in the trend, because inflation is too high to change the Fed's stance and it is too high to be seen as a trend.
It is also concerning that the rise in energy prices is strengthening, especially as oil prices soared to $80 in January.
PMI price indicators, which are recognized as the fastest leading indicators of actual prices, and manufacturing price indicators of the regional Fed are soaring, so the possibility of inflation re-accelerating cannot be ruled out.
In fact, Morgan Stanley is suggesting the possibility of inflation rising again in January. The federal funds rate futures market has also seen little movement in bets on a rate cut in June.
The December CPI, in conclusion, offered investors some relief. Now the market is headed for corporate earnings.
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