That could send a signal to the Fed, Kelly said. The latest sales update could confirm that consumers are increasingly stretched financially, or at least pulling back on spending.
The closely watched report on consumer prices will be released on Thursday and a report on retail sales will be released on Friday.
The government on Wednesday will release its report on producer prices, which will provide details for inflation on the wholesale level for businesses. Wall Street will also get important updates on inflation and more insight into how that is impacting retail sales. “The inflation battle is being won and the problem is the recession battle may be getting lost unnecessarily.” “Nobody’s arguing about whether inflation is falling, it’s simply the slope of the slide,” said David Kelly, chief global strategist at JPMorgan Funds. That’s when the Fed made another extra-big interest rate increase of three-quarters of a percentage point. Investors will potentially get a more detailed picture of the Fed’s thinking on Wednesday when the central bank releases minutes from its latest policy meeting. The goal is to slow economic growth and cool both borrowing and spending in order to get inflation under control, but the plan risks sending the economy into a recession. Wall Street has been turbulent amid worries about stubbornly hot inflation and the Federal Reserve’s plan to tame high prices by raising interest rates. Major indexes are coming off a volatile week where they notched out gains because of an early two-day rally that shielded stocks from several weak days.
Small company stocks also fell, dragging the Russell 2000 index 0.6% lower. The Dow and Nasdaq have also closed lower the past four trading days. The Dow Jones Industrial Average lost 0.3% after wavering between small gains and losses, and the Nasdaq composite fell 1%. The S&P 500 fell 0.7%, extending its losing streak to a fourth day. Wall Street added to its recent string of losses today, as stocks fell ahead of a busy week of inflation updates and the start of corporate earnings reporting season.
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