February CPI: What to expect on inflation data off jobs report

03/11/2024 23:54

As investors eagerly await February's Consumer Price Index (CPI) print on Tuesday, Rockland Trust Chief Investment Officer Dave Smith joins Yahoo Finance Live to share his outlook on equity markets in light of the anticipated inflation data. Smith acknowledges that the last two CPI prints came in higher than expected. However, he notes last week's jobs data showed lower-than-expected wage growth, making him optimistic: "That was a precursor of what we might see tomorrow." He believes that if the results align with the 3.1% expectation, it would be "a good thing" for the economy. Nonetheless, Smith cautions, "there's always a risk that you don't see." Despite economic uncertainties, Smith notes that the S&P 500 (^GSPC) is "trading at a fair valuation," with risks already priced in. However, with the Federal Reserve's potential rate cuts looming, Smith suggests that markets should have "a higher-priced multiple." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith

Smith acknowledges that the last two CPI prints came in higher than expected. However, he notes last week's jobs data showed lower-than-expected wage growth, making him optimistic: "That was a precursor of what we might see tomorrow." He believes that if the results align with the 3.1% expectation, it would be "a good thing" for the economy. Nonetheless, Smith cautions, "there's always a risk that you don't see."

Despite economic uncertainties, Smith notes that the S&P 500 (^GSPC) is "trading at a fair valuation," with risks already priced in. However, with the Federal Reserve's potential rate cuts looming, Smith suggests that markets should have "a higher-priced multiple."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith