Sam Boughedda

Investing.com – Stocks sank on Monday as rising Treasury yields– which move inverse to price– sent tech shares tumbling.

Investors are bracing for tomorrow’s release of inflation data for March, which is widely expected to show price gains running their hottest in four decades.

The job market remains strong, with the economy at full employment for the first time in decades, thanks to the recovery from the Pandemic Era shutdowns.

Tomorrow’s data release is the last time the Federal Reserve will see official consumer price index data before its May meeting, when it is expected to raise rates by a half point, rather than its customary quarter-point move.

Oil prices are down to $94 per barrel. That could mean that the inflationary pressures experienced in recent months might be at an end. If energy prices are low enough, this will ultimately lead to lower fuel prices and higher prices for consumer goods.

As the quarter’s first reporting season starts, there will be a lot of big-company earnings this week. Other companies and big banks are scheduled to start Wednesday.

Stock market in the United States is off Friday due to holiday weekend. Investors are therefore looking for a shorter trading week.

These are the three factors that will impact markets tomorrow.

1. Consumer Prices

Data will be reported by the US on Tuesday, at 8:30 ET. It is anticipated to report an 8.4% increase year-over-year, following a 7.9% rise in February. CPI is forecast to rise 1.2% in March from February, which was 0.8% higher, according to analysts following Investing.com.

2. Inflation core

MoM, which measures the changes in the price of goods and services excluding food and energy, is forecast to come in at 0.5% for March, matching February’s reading.

3. Fed speech

Tomorrow will see Lael brainard speaking as the Fed vice chair nominee. Brainard stated last week that the Fed may begin reducing its balance sheets at an accelerated pace as early as May. Brainard is currently awaiting confirmation by the Senate.