Join Chris and Jack LIVE at 1 p.m. ET to combat inflation’s comeback!
This week, all eyes are on inflation data and a flurry of central bank rate decisions that could set the tone for markets as we approach year-end.
With the Consumer Price Index (CPI) expected to print at 2.7% year-over-year — up from the September bottom of 2.4% and projected higher year over year — there’s growing concern about inflationary pressures creeping back into the picture.
If the forecast holds, a 2.7% reading might help markets shrug off inflation fears in the short term because this is already priced in.
However, a higher-than-expected number, like 2.8% or 2.9%, could be a different story — potentially triggering a swift and violent market reaction. On the flip side, a 2.6% print or lower might bring optimism, suggesting inflation is still relatively under control.
The tricky part is how the market digests these numbers.
Even with a sharp uptick in inflation over the past few months, we’ve seen the S&P 500 carve out all-time highs, seemingly ignoring the broader economic picture. But how long can this disconnect last?
It’s hard to believe that sustained inflation above 3% wouldn’t start to weigh on sentiment.
Adding to the week’s volatility, six central banks around the world are set to make rate decisions.
The Federal Reserve, European Central Bank, Swiss National Bank, and Bank of Canada are all expected to cut rates. Meanwhile, the Reserve Bank of Australia is holding steady at 4.35%, and the Bank of Japan continues to maintain its ultra-low 0.25%.
For the Fed, Wednesday’s 8:30 a.m. ET decision is critical.
The expectation is for another rate cut, bringing the target range to 4.25% on the low end. However, the market’s reaction will hinge on the messaging — and whether the Fed maintains a dovish tone heading into 2025.
The Housing Conundrum
While inflation data is grabbing headlines, sticky-high mortgage rates and elevated housing prices remain a problem. The 30-year mortgage rate sits around 6.7%, far from the low sixes we saw before September’s rate decision.
Despite two rate cuts in recent months, the bond market isn’t reflecting these changes yet — keeping borrowing costs elevated.
Housing prices have come off their highs slightly, with median prices down around $20,000. However, affordability remains a challenge, and either home prices need to fall further, or rates need to decline to balance the market.
A shift in 10-year yields — which currently hover around 4.2% — could bring relief. But so far, the bond market has been stubborn.
As we navigate this critical week, inflation and central bank moves will dominate market narratives. Whether the CPI print meets expectations or surprises to the upside, the Fed’s next steps will be pivotal in determining how the year closes out.
For traders, this is a time to stay alert, manage risk, and watch how markets respond to these key events.
Brace for volatility — and let’s see how the market reacts.
I’m hosting an event at 1 p.m. ET today to show everyone how I target extra money from the market each and every week, which will certainly go a long way toward helping combat inflation.
Please feel free to join myself and the great Jack Carter!
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Inflation Is Back. Here’s How You Can Tame It
Look at this headline…
The Fed has been trying to keep the economy afloat.
From the numbers they’re looking at, they think the progress they’ve had has stalled.
If you think things are bad now, how do you think the economy will be when this “progress” stalls?
We’re walking right into an even worse inflation and until someone cleans this whole mess from top to bottom, it won’t get any better.
Your only option?
If you increase how much you earn, you could stay relatively immune to a rising cost of living. The good news is that I might have just figured out how regular people can do just that.
How does targeting income from the stock market with just one trade per week sound?
You place the trade every Monday by 11:59 a.m. ET, and then close it on Friday.
It’s that straightforward.
I’ll be live at 1 p.m. ET today with former market maker Jack Carter to show everyone exactly how it’s done.
Of course, there are no guarantees on profits or losses in trading, but this might just be what could help turn the tables for regular folks.
