CPI Stocks Prepare for Make-or-Break Inflation Data Release

Crypto and tech stocks are poised to react to the upcoming July inflation data release. Economists expect headline CPI to rise 0.1% monthly and 3.4% annually, while core CPI is forecast at 0.2% and 2.5%. BTIG strategist Jonathan Krinsky warns that hotter inflation may hurt equities more than Treasuries because stocks have priced in less inflation risk.

Tesla's stock could benefit from cooler inflation through lower yields and cheaper vehicle financing costs, but Palantir remains sensitive to interest rates due to its premium valuation despite strong revenue growth. Coinbase and Strategy are also poised to move with Bitcoin if the CPI report changes expectations for Federal Reserve policy.

Roger El-Assal of Cantor Fitzgerald kept an Overweight rating on Strategy in August but cut the price target to $186 from $212, reflecting a weaker Bitcoin backdrop. Robinhood may benefit from higher trading activity, as its business depends on customer transactions.