This Week's Macro Outlook: CPI Challenges Fed's Hawkish Stance, Geopolitical Tensions Counter Index Sell-off

BlockBeats News, January 10th

On the first full trading week of 2026, cross-asset synchronous rise, Wall Street's risk sentiment is booming again. Investor appetite for risk is evident. The S&P 500 index rose 1.6% this week, the Russell 2000 index rose 4.6%. The Vanguard S&P 500 ETF (VOO) attracted $10 billion in just a few days—a staggering pace for a passive fund. These are signs of a strong start to the year.

Tuesday 21:30, US December Nonseasonally Adjusted CPI YoY, Seasonally Adjusted CPI MoM, Seasonally Adjusted Core CPI MoM, Nonseasonally Adjusted Core CPI YoY;

Wednesday 21:30, US November Retail Sales MoM, US November PPI YoY/MoM, US Q3 Current Account;

Thursday 21:30, US Initial Jobless Claims through January 10th, US January NY Fed/Philly Fed Manufacturing Index, US November Import Price Index MoM.

In addition, Federal Reserve officials spoke intensively this week, suggesting that a rate cut is highly unlikely before Powell's successor takes office, as shown in the attached chart. The Global Research Department strategist at Bank of America said Friday’s data strengthened their conviction that the Fed won't cut rates again before the new Fed chair takes the helm.

This week, US Secretary of State Pompeo plans to meet with officials from Denmark and Greenland. Turmoil sparked by nationwide (including in the capital Tehran) anti-government protests in Iran may also affect market risk sentiment in the short term.