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Are U.S. stocks about to face a major shake-up? If CPI comes in hotter than expected, the Nasdaq may take the hit for the Fed first!

U.S. stock investors may have trouble sleeping tonight.
At 21:30 on November 10, the U.S. October CPI report is due. The market expects year-over-year inflation to come in at 3.7%, but what is really making traders nervous is whether inflation will once again give the Fed a reason to raise rates.
If the data comes in above expectations, Treasury yields could rise, and bets on a December rate hike could gain momentum. That would be bad news for U.S. stocks.
Tech growth stocks on the Nasdaq are especially sensitive to interest rate changes. The higher rates go, the less future profits are worth in today's dollars. Put simply, the market may apply a fresh discount to those high-valuation stocks.
Of course, sectors such as banking and energy may not react in exactly the same way, so it is not safe to assume all stocks will fall together.
If CPI comes in below expectations, the situation could reverse: yields may retreat, expectations for rate cuts or a pause in hikes could build, and tech stocks may get some breathing room.
What the market is really worried about tonight is not the 3.7% figure itself, but the possibility that inflation could spiral out of control again.
Whether U.S. stocks can dodge a bullet this time depends on whether the data cooperates. #每周来晒 and #美国10月CPI即将公布 $SNDK
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Comment 26
Phantom Assassin PA
Tone.
What the market is really worried about tonight is not the 3.7% figure itself, but the possibility of inflation spiraling out of control again.
Whether U.S. stocks can dodge a bullet this time depends on whether the data cooperate. They’ve fallen enough; it’s time to rise
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