Inflation Data Set to Spark Volatility in Tesla, Palantir, Coinbase
The July inflation data is set to release on Wednesday, and market analysts are expecting it to have a significant impact on stocks such as Tesla, Palantir, Coinbase, and Strategy. Economists predict that headline CPI will rise 0.1% from June and 3.4% from a year earlier, while core inflation is forecast to increase 0.2% monthly and 2.5% annually.
Barron's suggests that a weaker-than-expected inflation reading could help reignite Tesla's rally, alongside progress in its artificial-intelligence ambitions. However, BTIG strategist Jonathan Krinsky told MarketWatch that hotter inflation could hit equities harder than Treasuries because bonds have already started reflecting inflation concerns while stocks have not.
Palantir represents the cleanest valuation-sensitive stock on the list, with exceptional fundamentals and a stellar second-quarter revenue surge of 93%. However, its high valuation makes it vulnerable to rising discount rates and decreased willingness to pay premium multiples.