US inflation data: How it influences the US stock market rally - analysis and outlook

US inflation data: How it influences the US stock market rally - analysis and outlook

According to a report from finanzmarktwelt.de, Wall Street was able to shake off interest rate concerns and experienced a strong boost after the last Fed meeting. Both the S&P 500 and the Nasdaq 100 posted significant gains at the start of the seasonally favorable November. The Nasdaq 100 Futures Index broke out above an important resistance area on Friday, showing a positive chart picture. Nevertheless, caution is advised as the index is overbought and a correction is likely. US inflation data on Tuesday could provide fresh impetus and trigger either a correction or another rally.

Analysts expect consumer prices to rise 3.3% in October, while the core rate is expected to remain unchanged at 4.1%. Disappointing numbers could lead to a correction, while lower inflation rates could strengthen the rally. From a technical perspective, the Nasdaq could continue its upward move, but a pullback or test of the 50-day line is also likely.

Given these developments, it is important to act cautiously in the market and keep a close eye on inflation data. A conflict of interest may exist as the author of this analysis may be invested in financial instruments. Therefore, it is important to keep the risks in mind and be aware that CFDs pose a high risk of loss due to their leverage. It should always be noted that past investment performance does not guarantee future profits.