Did You See the CPI? (E43)

Wow, last week’s CPI print of 2.5% certainly caught the attention of market participants. The implications are significant, as it increases the likelihood of the Fed cutting rates in the near future. As we enter this week, all eyes are on retail sales data, the FOMC projections, statement, and the final decision. The burning question in the minds of many analysts and investors is whether the Fed will opt for a 25bps reduction or a more aggressive 50bps cut. The outcome of the decision is set to have a palpable impact on various asset classes, including equities. Speaking of equities, there is also considerable anticipation around the possibility of the SPY reaching new highs this week. Currently trading at 560, it faces a significant resistance level at 565. Meanwhile, the cryptocurrency market is also experiencing its own dynamics as BTC holds at 58k, signaling a potential shift in trend, with a notable resistance level at 64k. Shifting our focus to the real estate market in California, it’s evident that the pace of activity is creating challenges for both buyers and agents. The impact on buyer’s agents with concessions needing to be covered by buyers adds an additional financial burden to the process of acquiring a home, reshaping the dynamics of real estate transactions in the region. Additionally, there are emerging signs of market adjustments, with houses staying on the market longer and occasional price cuts in some areas, indicating a potential shift in the real estate landscape. The evolving financial and economic landscape continues to present new challenges and opportunities, driving a nuanced and dynamic market environment.