Wall Street is eagerly awaiting Thursday's Consumer Price Index (CPI) release, the Federal Reserve's preferred gauge of inflation. Wells Fargo Investment Institute global investment strategist Veronica Willis joins Catalysts to offer insights on market trends and inflation.

Willis emphasizes the potential impact of the CPI data, stating it "has that potential to be a pretty big market mover" if inflation exceeds Wall Street's expectations. She points out that while markets have factored in continued cooling of inflation, the real risk lies in higher-than-expected figures, "and that not really being priced in." Willis cautions that any surprises in upcoming data, including tomorrow's CPI, "could be a catalyst for market volatility."

Regarding market outlooks, Willis predicts, "We think we're going to see some more volatility through the end of this year. Our midpoint target is 5400 on the S&P 500 (^GSPC) so we do see the potential for a pullback." However, she encourages a longer-term perspective: "But we're really focused on positioning our clients thinking through 2025, so yes there's gonna be some volatility through the end of the year. But that could present an opportunity to do some rebalancing, get your portfolio positioned in the right way to be ready for that growth we're expecting in 2025."

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Angel Smith