U.S. stocks face a hurdle tonight! If CPI comes in hotter than expected, tech stocks may be the first to take the hit for the Fed

U.S. stock investors may want to prepare themselves mentally tonight.
The U.S. October CPI is due out soon, and the market’s biggest worry is that inflation will once again prove stickier than expected.
If inflation data comes in hot, the probability of a Fed rate hike in December may rise further, and Treasury yields could climb as well.
That would be bad news for tech stocks.
High-valuation growth stocks in particular could suffer, since future profits are calculated using discounting; the higher the interest rate, the more their future earnings’ present value is likely to be squeezed.
The Nasdaq may therefore face greater downward pressure, and the S&P 500 could also be dragged down.
Of course, if core CPI comes in below expectations, the market may start pricing in rate-cut hopes again, giving tech and growth stocks a chance to catch their breath.
The logic for U.S. stocks tonight is simple: cooling inflation, happy markets; heating inflation, valuations take a hit.
What investors fear most is not companies failing to make money, but the Fed suddenly telling everyone: money should stay a little more expensive. #每周来晒 and #美国10月CPI即将公布 $SPCX