US stocks jump as investors expect further slowdown in consumer inflation

  • US stocks jumped on Monday ahead of the CPI report released on Tuesday.
  • Wall Street expects inflation to slow to an annual rate of 6.2% in January from 6.5% in December.
  • But Fed policymakers have recently said that the central bank still has a lot of work to do on inflation.

US stocks jumped on Monday as investors anticipated Tuesday’s CPI report, which is expected to show a further slowdown in inflation.

Wall Street estimates January inflation will be 6.2% year-on-year, up from 6.5% in December and a June high of 9.1%. The Labor Department will release data at 8:30 am ET.

In a research note, JPMorgan analysts say a value between 6% and 6.3% is the most likely scenario, with a 65% chance. If this happens, expect a bullish move from the S&P 500 with a 1.5% to 2% gain.

Investors are optimistic that improved data will allow the Federal Reserve to start cutting rates later this year. But Fed policymakers recently said the central bank still has a lot of work to do on inflation and warned that they may eventually have to raise benchmark rates higher than markets are expecting.

Here’s where the US stocks were at the market close at 4:00 pm on Monday:

Here’s what else is happening:

In commodities, bonds and cryptocurrencies:

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