The stock market is rising today, with key indices such as the S&P 500, Dow Jones, and Nasdaq 100 continuing their strong uptrend ahead of earnings and the US inflation report.
Stock Market Rises Ahead of US Inflation Report
The US stock market is in a bull run, thanks to recent earnings and macroeconomic data. A report released on Wednesday showed that the economy added over 130k jobs in January, well above the expected 70k. The unemployment rate dropped to 4.3%, while the wage growth continued.
Still, economists are concerned about the report, especially because of the ongoing revisions. For example, data showed that the economy created just 181k jobs last year, much lower than the originally created 540k. As such, the January report is likely to be downgraded as well.
The next key catalyst for the Dow Jones, S&P 500, and Nasdaq 100 is the upcoming US Consumer Price Index (CPI) report, scheduled for release on Friday. Economists polled by Reuters expect the upcoming report to show that the headline and core inflation dropped to 2.5% and 2.6%, respectively.
A lower inflation report than expected will be bullish for the US stock market, as it will raise the odds of the Federal Reserve cutting interest rates in the coming meetings.
READ MORE: Solana Price Analysis: SOL Crashes Despite Booming Ecosystem Growth
Key Earnings are Upcoming
The Dow Jones, S&P 500, and Nasdaq 100 also jumped as investors reacted to the latest earnings reports from top companies such as Cisco, T-Mobile, Shopify, AppLovin, and Hilton Worldwide. Most of these companies have reported strong results, with a FactSet report showing average earnings growth of 13% for the fifth consecutive quarter.
More U.S. companies will report earnings later today. Some of the most notable companies to watch will be Applied Materials, Arista Networks, Unilever, Airbnb, Zoetis, and Coinbase. The other firms to watch on Friday will be Moderna, Air Lease, and Advance Auto Parts.
Trump Weighs Quitting USMCA
The other key catalyst for the stock market today will come from the White House. According to Bloomberg, Donald Trump is pondering whether to quit the USMCA trade agreement that he negotiated in his first term.
Such a move would have a significant impact given the substantial volume of goods traded among the three countries. Data show that the three countries handle trillions of dollars in annual trade. Still, the president cannot unilaterally exit the deal, as it was passed in the House of Representatives and the Senate.
READ MORE: Cardano Eyes Billions via Blockchain-Powered Consumer Apps
