Jay Woods says CPI, PPI may set market tone
Freedom Capital Markets’ Jay Woods said this week’s PPI and CPI reports could shape the market’s direction into the Fed meeting and beyond, with SPDR S&P 500 ETF Trust still shy of its record close.
September is off to a rare start with early gains, but Freedom Capital Markets’ Jay Woods warns this holiday-shortened week could set the tone for the rest of 2026. Two major data points, the Producer Price Index ( PPI ) and Consumer Price Index ( CPI ), could impact the direction the market starts to head ahead of the midterm elections, Woods says. "As we return to business as usual, there’s nothing ‘usual’ about the market," Woods wrote in a weekly newsletter. " The PPI and CPI numbers come ahead of "one of the most anticipated Fed meetings of the year" with the latest Federal Open Market Committee coming September 15 and 16.
That event could see a change to the rate policy. "We got unemployment data that was good news for the economy but not necessarily great news for those that want lower rates," Woods said. The good news wasn’t enough to take the S&P 500 to new highs, but the index is getting closer. 37 set on Aug.
13. "Each time we rally we are making a slightly lower high. It feels like something’s gotta give. " Woods remains cautious in the near-term due to higher energy prices, rising yields and seasonal headwinds cited.
" Read Also: EXCLUSIVE: Market Expert Jay Woods Picks Top 2 Magnificent Seven Stocks For Rest of 2026, 2027 CPI and PPI on Watch Woods said the newest jobs data make things "very interesting" as they don’t scream "cut rates" and could indicate the opposite that a rate hike could be back on the table. "Last week battle lines were drawn when it came to issues of a rate hike," Woods said. The market expert said President Donald Trump posted that rates should be lower on social media, leaving Federal Reserve Chairman Kevin Warsh with a tough decision.
Following the jobs data, Warsh and the Federal Reserve members will also get CPI and PPI data this week, ahead of making their rate decision. " PPI data will be released on Thursday, followed by CPI data on Friday. 2% monthly increase showing the inflation story cooling. A higher increase would indicate a potential push for a September rate hike the following week.
"For Kevin Warsh, core inflation matters more than the headline because it strips away volatile food and energy prices and provides a cleaner look at the underlying inflation trend. " The market expert said Friday’s CPI report may determine if Warsh has reason to hike rates. Read Also: EXCLUSIVE: Top 12 Most-Searched Tickers in August on Pro — SpaceX, Nebius Climb, Palantir Returns Image via Shutterstock