The markets are trading with tepid optimism ahead of tomorrow's pivotal CPI report. We've been so caught up in the volatility of the last few weeks that a clear market signal--positive or negative--is a relief all on its own.
With treasury yields pulling back a little in anticipation of a better-than-expected print, equities are getting a little relief as well. Names like Nvidia are recovering after a brutal selloff on Friday. Meanwhile, Bitcoin is dragging its cadre of stocks and altcoins ever higher after crossing $71,000. With bull signals like UK regulators approving crypto-backed ETNs, how couldn't you be bullish?
Either way, there's still a tremendous amount of risk weighing down this market. A hotter-than-hoped CPI may finally kick off a proper selloff, but cooler-than-expected inflation might not be enough to confirm an extended rally. That will have to wait until Jerome Powell's next interest rate decision next week. Q1 is ramping up to a thrilling conclusion. So, let's check out the major stories that will push long-term price action to start the week.