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Why Wednesday’s U.S. inflation report could ignite stock-market volatility as investors boost bets on Fed’s rate cuts

Market Extra Last Updated: May 9, 2023 at 4:05 p.m. ET First Published: May 9, 2023 at 3:29 p.m. ET March’s CPI report may dash investor expectations for Fed pause, says Melissa Brown at Qontigo The U.S. April consumer price index report due Wednesday is expected to show that progress toward reducing inflation is stalling

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March’s CPI report may dash investor expectations for Fed pause, says Melissa Brown at Qontigo

The U.S. April consumer price index report due Wednesday is expected to show that progress toward reducing inflation is stalling

Justin Sullivan/Getty Images

Stock market investors will be closely watching Wednesday’s U.S. April inflation report as a significant deviation from forecasts may cause losses for those expecting the Federal Reserve to keep interest rates unchanged at its next meeting and potentially cut rates later this year as its year-long monetary tightening cycle ends.

The April consumer price index reading from the Bureau of Labor Statistics, which tracks changes in the prices paid for goods and services, is expected to show a 0.4% monthly increase and a 5% rise…

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