economy
March 10, 2026
New inflation data is set for release Wednesday. How to trade it
Traders see the February consumer inflation report as a major inflection point for their Federal Reserve outlooks.
TL;DR
- The February consumer inflation report is seen as a major inflection point for Federal Reserve outlooks and market direction.
- Economists expect the consumer price index (CPI) to rise moderately month-over-month and year-over-year.
- A weak jobs report adds pressure to the upcoming CPI data, with potential market impacts discussed.
- Some traders are bullish on software stocks, seeing recent sell-offs as buying opportunities.
- Others are advising caution in U.S. equities and suggesting international markets for potential discounts.
- If inflation proves sticky, assets tied to physical infrastructure, energy systems, and commodities are favored.
- Comparisons are drawn to 2022 market conditions, with bullishness on energy, commodities, oil, and the dollar, while bearish on big tech and bitcoin.
- Cyclical stocks, including materials, industrials, and financials, are seen as a strong play regardless of the CPI report outcome.
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