JP Morgan with the bait type title:
JP Morgan says a US CPI print at or below 6.9%y/y could see the S&P500 jump up to 10%
Goldman Sachs is a bit more restrained, seeing gains for the S&P above 3% if the US CPI falls below 7%.
- a reading of 7-7.3% would see 2-3% added to the S&P
- from 7.4 to 7.7 sees the S&P fall by 1 to 2%
- above 7.7% sees losses of more than 3%
Goldman Sachs is wary of a big rebound in the S&P, citing a decrease in the extreme bearish stance that existed in the fall. This has significantly unfolded over the past month. According to the analyst:
- “I’m not recording this to make a bearish statement – again, the current measurement is flat – rather it’s to say that this magnitude of demand is very unlikely to sustain into the first quarter”