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“I think the overarching message that the market is sending you right now is that the inflation data is not hot enough to really kind of pull the Federal Reserve back.” – 01:23
Michael Reinking, Senior Market Strategist at the NYSE, joins Remy Blaire to discuss the latest developments in the financial markets, focusing on the recent consumer price index (CPI) data and its implications for the economy.
The pair begin the discussion by examining the CPI figures that have made headlines, noting that while inflation is rising moderately, the reaction from the markets has been mixed. Michael highlights that the consumer goods sector has seen some increases, particularly in appliances, while the services side has come in hotter than expected. This unexpected flip in the data suggests that the inflation figures are not alarming enough to deter the Federal Reserve from its current course, with the upcoming jobs report being a critical factor in determining future monetary policy.
Michael unpacks the implications of the recent downward revisions to nonfarm payrolls and the weaker-than-expected July figures. Michael emphasizes the importance of the Jackson Hole gathering for the Fed, where we can expect continued messaging around a potential rate-cutting cycle as we move into the fall.
The segment wraps up by analyzing key levels to watch in the S&P 500 as the market opens. Michael identifies critical support levels and the proximity to all-time highs, providing listeners with actionable insights for the trading day ahead.