It was a mixed day of trade across the pond on Monday, with the S&P 500 (^GSPC) snapping a week-long rally, but still trading above the symbolic level of 5,000. The Nasdaq (^IXIC) also finished the day 0.3% lower following a similar run of luck.
The Dow (^DJI) bucked the trend, rising 0.3% to a record close off the back of a host of corporate earnings.
Today, markets will look to the CPI print for guidance.
Here’s our US desk’s take:
The inflation report, set for release at 8:30 am ET, is expected to show headline inflation of 2.9%, a significant deceleration from December’s 3.4% annual gain, according to estimates from Bloomberg.
If those estimates hold true, it will be the lowest annual inflation rate in about three years and the first time that number will come in below 3% since March 2021.
Over the prior month, consumer prices are expected to rise 0.2%, matching December’s recently revised monthly increase.
On a “core” basis, which strips out the more volatile costs of food and gas, prices in January are expected to have risen 3.7% over last year — a slowdown from the 3.9% annual increase seen in December, according to Bloomberg data.
Monthly core prices are expected to have climbed 0.3%, unchanged from the prior month.
