Investing 12-01-2023 17:11 433 Views

How to play the market after the U.S. monthly inflation data?

S&P 500 is slightly down this morning after the U.S. Bureau of Labour Statistics said consumer prices rose in line with expectations last month.

Expert reacts to the CPI print

On a year-over-year basis, the consumer prices index was up 6.5% in December. A 0.1% decline for the month also matched expectations. Reacting to the CPI print on CNBC’s “Squawk Box”, Bespoke’s Paul Hickey said:

Surprisingly, we see more things working in the market’s favour. That’s something from the market’s perspective that keeps us slightly positive here.

Core inflation (excluding food and energy) was up 0.3% for the month and 5.7% versus a year ago – both in line with the economists’ forecast.

The benchmark index failed to break above a key resistance around the 4,000 level on Thursday.

Time to put the money to work?

Cost of services excluding shelter – an inflation measure that the Fed Chair Jerome Powell recently dubbed “most important”, though, went up 0.4% in December.

Nonetheless, Hickey sees now as a suitable time for investors to look for opportunities in the equities market.

From a long-term perspective, I think you want to be looking and putting money to work [especially] if you get a weak day.

The monthly inflation data also saw Patrick Harker (President of the Federal Reserve Bank of Philadelphia) dub 25 basis points hike “appropriate” moving forward. Last week, a Piper Sandler analyst warned that the S&P 500 could crash to 3,225 level this year as Invezz reported here.

The post How to play the market after the U.S. monthly inflation data? appeared first on Invezz.

Other news