U.S. Inflation Data Looms as Key Risk Amid Market Volatility

Upcoming U.S. inflation data could unsettle investors, igniting concerns over soaring Treasury yields and economic policies under Donald Trump. This pivotal report will dictate market movements, especially after strong jobs data altered interest rate expectations. Investors are keen on Fed's response to potential shifts in inflation dynamics.

The upcoming release of U.S. inflation data is set to be a critical test for stock investors already jittery about rising Treasury yields and Donald Trump's policy strategies.

The benchmark S&P 500 started the year with a 1% dip following years of impressive gains due to concerns over revived inflation, which the Federal Reserve anticipates could grow faster than previously thought.

Investors are particularly wary of the monthly consumer price index, set for release on January 15, which could significantly influence market volatility if it exceeds expectations, amid strengthened expectations due to robust job growth data.

(With inputs from agencies.)