The S&P 500 experienced a second consecutive day of losses, with investors closely watching the consumer price index (CPI) data set to be released at 8:30 a.m. ET. The Dow Jones consensus estimates a 0.1% increase in headline CPI month-over-month and a 3.4% year-over-year rise, while core CPI is expected to rise 0.2% month-over-month and 2.5% year-over-year.
Predictions on Kalshi show that only 21% expect the month-to-month figure to exceed 0.1%, and 19% foresee the year-over-year number surpassing 3.4%. Cisco is scheduled to report earnings after the market closes, with its stock having risen 22% over the past three months but down 7.6% from its June peak.
Jim Cramer highlighted that rising long-term Treasury yields, currently at a 19-year high of 5.247%, could prompt the Federal Reserve to tighten rates, making bonds more attractive compared to stocks. He noted that sectors like financials and healthcare have performed well, with financials up 13% and healthcare up 17.5% over the last three months.
Notably, JPMorgan and Bank of America reached all-time highs, with respective increases of 20% and 26% in three months. In contrast, Nike's stock has plummeted 44% over the past year, while CoreWeave shares surged 14% after strong earnings and guidance. Airbnb's stock has also seen significant gains, up 22% in August and nearly 55% over six months, reaching levels not seen in over four years