The economy and the stock market have been defying the low-growth doomers for more than a year. Mother Nature is now testing that record.winzir
Hurricane Milton slammed into Florida’s populous western coast, ripping a path of destruction that could cause billions of dollars in damages. S&P 500 futures fell slightly overnight after the benchmark index hit its 44th high of the year on Wednesday.
Adding to the market tensions: Investors await another big inflation report this morning.
The Fed is on high alert this hurricane season. Raphael Bostic, the Atlanta Fed president, said the one-two punch packed by Milton and Helene could affect the economy for at least six months, particularly by snarling supply chains.
Officials also worry that the closure of the Port of Tampa Bay, Florida’s largest, could disrupt fuel supplies across a portion of the state from Tampa to Orlando that is an economic powerhouse, accounting for about 2.8 percent of the national G.D.P.
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The storm landed as a Category 3 hurricane and weakened to a Category 1 overnight. But it has spawned deadly tornadoes and huge storm surges. One striking image of the storm’s ferocity: Winds tore off a big portion of the roof of Tropicana Field, home to the Tampa Bay Rays baseball team.
Almost three million residents are without power.
The storm will probably exit the state Thursday.
Thursday’s economic data is expected to bring better news. The Consumer Price Index report, due at 8:30 a.m. Eastern, is predicted to show that inflation is continuing to cool, despite a rebound in the jobs market and solid wage growth.
Here’s what to watch:
Economists forecast that headline C.P.I. rose last month by 2.3 percent on an annualized basis — the lowest increase since February 2021, according to Deutsche Bank.
Core inflation, which strips out volatile food and fuel prices, is expected to show a 3.2 percent annual increase.
Shelter inflation, which has an outsize importance in C.P.I. reports and is weighing on younger and lower-income voters, is expected to rise again, Goldman Sachs economists predict.
The White House would welcome evidence of slowing inflation. Donald Trump has made rising prices a central point in his attacks against Vice President Kamala Harris and the Biden administration’s handling of the economy. That message has helped him gain an advantage over Harris in some polls on that crucial issue.
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