Dow Jones, Nasdaq, S&P 500 weekly preview: Markets brace for February CPI data
On Friday, the equity market took a step back, concluding a week filled with ups and downs as Nvidia's (NASDAQ:NVDA) remarkable surge paused.
The week ended on a lower note for all three primary indices, with the S&P 500 dropping by 0.26%, and the Dow Jones Industrial Average and Nasdaq Composite decreasing by 0.93% and 1.17%, respectively. This downturn represented the Dow's worst week since October.
The pullback was primarily driven by a decline in NVDA shares, which fell more than 5.5% Friday, marking its most significant drop since late May.
Looking forward to the current week, it’s another important one, with the upcoming consumer price index (CPI) report expected to attract most of the attention.
Following a mixed jobs report on Friday, Nomura analysts expect February CPI data to show another strong print for core inflation.
“We expect core CPI inflation moderated only slightly to 0.368% m-o-m in February from a 0.392% rise in January,” analysts led by Aichi Amemiya said in a note.
“Our forecast implies a y-o-y change of 3.8% (3.772%), down from 3.9% in the previous month. Core goods became less of a drag in February as the decline in used vehicle prices likely moderated,” they added.
The latest Manheim wholesale used vehicle data for February indicates that the downward trend in retail used vehicle prices may continue to soften in the upcoming months, analysts continued.
Apart from the CPI, other important economic developments that will be closely scrutinized by analysts and investors include the Producer Price Index (PPI) and retail sales reports, and the latest initial jobless claims data.
Analysts have shown a less pessimistic view towards S&P 500 companies' Q1 earnings compared to recent trends, yet companies
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