Will the New York Stock Exchange Correction Last Due to Inflation Concerns? [Weekly Outlook for the New York Stock Exchange]

CPI Announcement Scheduled for the 15th (Local Time)

Concerns Over Rising Treasury Yields if Inflation Indicators Are Strong

Correction May Continue Following Last Week

This week (13th-17th), the New York Stock Exchange is being closely watched to see if a correction will occur due to inflation concerns, following last week. On the last day of the New York Stock Exchange last week, the 10th (local time), the U.S. employment figures showed unexpectedly strong results, causing U.S. Treasury yields to surge and all three major indices of the New York Stock Exchange to close down by over 1%. On this day, the U.S. Department of Labor announced that non-farm payrolls in the U.S. increased by 256,000 in December compared to the previous month. This figure significantly exceeded the expert forecast of 155,000 compiled by Dow Jones. If the inflation indicators are also strong this week, the New York Stock Exchange could face a bigger shock.

On the 14th, the U.S. Producer Price Index (PPI) for December will be released. The market forecast is a 0.3% increase from the previous month. If it is higher than expected, the stock market may feel the burden due to inflation concerns. On the 15th, the Consumer Price Index (CPI) will be announced. The consensus is a 0.3% increase from the previous month.

After the CPI announcement, remarks from senior officials of the U.S. Federal Reserve will be made. Remarks from Thomas Barkin, President of the Richmond Fed, and Neel Kashkari, President of the Minneapolis Fed, are scheduled. Remarks from John Williams, President of the New York Fed, and Austan Goolsbee, President of the Chicago Fed, will also be made. On the 16th, December retail sales will be released.

This week, bank earnings are scheduled. JP Morgan, Wells Fargo, Citigroup, and Goldman Sachs will release their fourth-quarter earnings on the 15th. The following day, Bank of America and Morgan Stanley will join.

As Donald Trump, the President-elect of the United States, is scheduled to be inaugurated on the 20th, issues such as tariff policies related to Trump are also drawing attention on Wall Street.

New York = Park Shin-young, Correspondent nyusos@hankyung.com