Welcome to Extreme Investor Network, where we bring you the latest updates and insights on the world of investing. Today, we’re diving into the recent news about inflation and its impact on the markets.
Investors who have been keeping a close eye on inflation got some good news recently. The latest producer price index report showed no change in wholesale prices for September, which was below expectations. This comes after a slightly hotter than expected consumer price index report on Thursday, but experts like David Seif, chief economist for developed markets at Nomura Securities, are urging investors to stay calm.
According to Seif, the key measure of inflation for the Federal Reserve is the core PCE, and the components of both the recent CPI and PPI reports look favorable. With the personal consumption expenditures price index for September set to be released on October 31, traders are feeling slightly more confident in the Fed’s rate cut path. The CME FedWatch Tool is now showing an 88% implied probability of a 0.25 percentage point cut at the November meeting, up from 83% on Thursday.
In addition to the inflation news, the third-quarter earnings season is off to a strong start. Companies like JPMorgan Chase, Wells Fargo, and BNY Mellon all beat their bottom-line estimates, which could provide another boost to investor sentiment.
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