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The Thursday release of the July CPI report should spark a sizable stock market rally, according to Fundstrat’s Tom Lee.
Core CPI is expected to be 0.22%, but Fundstrat expects the CPI report to undershoot at 0.15%.
“The primary driver remains the drag in CPI coming from the fall in used car prices,” Lee said.
Investors should expect a “sizable rally” in the stock market following the Thursday release of the July CPI report, according to Fundstrat’s Tom lee.
Consensus estimates suggest Core CPI to be 0.22%, but Fundstrat’s data science team estimates that inflation will undershoot to just 0.15%, which represents an annualized rate of 1.8%, just below the Federal Reserve’s long-term inflation target of 2%.
Lee’s bullish call is significant considering that just over a week ago, the Wall Street strategist warned investors of a short-term stock market sell-off due to poor seasonality in the month of August, combined with the flashing of a technical sell signal. Since…
2023-08-09 17:20:01
Article from finance.yahoo.com
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