Market Awaits November Inflation Data with Reduced Anxiety

According to BlockBeats, over the past three years, the monthly Consumer Price Index (CPI) report has been a key focus for U.S. stock traders. However, investors are now approaching the upcoming release of November's inflation data on Thursday with indifference. Options traders are betting that the S&P 500 index will fluctuate within 0.7% on the day, a significant decrease from the average actual volatility of 1% triggered by the previous 12 CPI reports up to September this year. This shift in market sentiment is justified. The Federal Reserve has recently prioritized signals of a weakening labor market over minor inflation rate fluctuations. Data released on Tuesday indicated that the job market remains sluggish, potentially paving the way for interest rate cuts next year. "The market has assumed that this data is either insignificant or questionable in quality from a data collection standpoint, and will not be overly scrutinized," said Alexander Altmann, Head of Global Equity Tactical Strategy at Barclays. The report is unlikely to influence the outcome of the Federal Reserve's policy meeting in January. Another reason for the diminished importance of the CPI is the upcoming end of Federal Reserve Chair Jerome Powell's term in May next year. His successor is expected to strongly advocate for significant interest rate cuts, aligning with U.S. President Donald Trump's unconventional demands for substantial rate reductions, regardless of the data.