The financial markets’ recent wobbles have dominated headlines ahead of the July Consumer Price Index (CPI) report, with the S&P 500 dipping by 0.6% and the Nasdaq Composite witnessing a 1.3% decrease. The Dow Jones and Bitcoin were not far behind, enduring a 0.4% and 0.2% dip, respectively.
Against this seemingly gloomy backdrop, Fundstrat’s Tom Lee offers hope. The analyst projects a significant rebound post the imminent release of the July inflation report.
A Big Bull Rally Ahead
A noteworthy mention, the consensus estimate pegs the Core CPI at a healthy 0.22%. However, contrary to popular opinion, the data science maestros at Fundstrat anticipate a slightly cooler reading, expecting inflation to undershoot to 0.15%.
This translates to an annualized rate of 1.8%, conveniently brushing past the Federal Reserve’s long-standing inflation target of 2%. The deviation is subtle, but its implications are profound.
