[Weekly NYSE Outlook] Trump's Tariffs May Become a Negative Factor Due to Inflation Concerns

With January CPI rising to 3% for the first time in 6 months

Additional Trump tariffs could stimulate inflation

May act as a negative factor for NYSE

This week (17-21), Wall Street investors are expected to focus on what policies President Donald Trump will announce regarding tariffs. This is particularly significant as recent U.S. inflation indicators have come in higher than expected, and the implementation of tariffs could further stimulate prices.

The U.S. Department of Labor announced on the 12th (local time) that the Consumer Price Index (CPI) for January increased by 3.0% compared to the same month last year. This is the first time the CPI has recorded a 3% increase since June last year. Compared to the previous month, it rose by 0.5%. Dow Jones had forecast a 0.3% increase from the previous month and a 2.9% rise from the same month last year.

The preliminary U.S. Manufacturing and Services PMI for February, to be released by S&P Global on the 21st, is another indicator that can gauge the U.S. economic situation. The benchmark of '50' indicates expansion or contraction of the economy.

Walmart's fourth-quarter results, due on the 20th, are expected to provide insight into U.S. consumer purchasing power, as consumer spending accounts for two-thirds of U.S. economic activity.

Federal Reserve officials will also make several speeches. On the 17th, Philadelphia Fed President Patrick Harker, Fed Governor Michelle Bowman, and Fed Governor Christopher Waller are scheduled to speak. On the 18th, San Francisco Fed President Mary Daly and Fed Vice Chair for Supervision Michael Barr will make public appearances. Vice Chair Philip Jefferson will speak on the 19th. Chicago Fed President Austan Goolsbee, St. Louis Fed President Alberto Musalem, Vice Chair Barr, and Fed Governor Adriana Kugler will take the podium on the 20th. On the final day (21st), Fed Vice Chair Jefferson will speak. Note that the NYSE will be closed on the 17th for Presidents' Day.

New York=Special Correspondent Park Sin-young nyusos@hankyung.com