The market is holding its breath! At 20:30 Beijing time on Friday, US stocks will usher in overweight pound inflation data--May CPI in the United States.

Judging from current market expectations, industry insiders' specific forecasts for May CPI data in the United States are as follows:

• The year-on-year increase in CPI in May is expected to remain at a high of 8.3%, the same as the previous month. The initial forecast in a Bloomberg survey last week was 8.2%.

• Core CPI growth in May, excluding food and energy, is expected to fall to 5.9% from 6.2% in April.

• Core CPI month-on-month growth is expected to fall from 0.6 per cent to 0.5 per cent in May.

It is worth noting that a new report by JPMorgan Chase & Co has led to speculation that tonight's CPI data will prove that inflation is hotter than expected.Michael Feroli, the bank's chief economist, predicted that this time the CPI would be higher than the market generally expected.

Even Sarah House, a senior economist at Wells Fargo & Co, doesn't expect oil prices to peak, so she doesn't expect inflation to peak either. She expects overall CPI to rise 8.4 per cent in May.

Can US stocks stand the test tonight? Let's take a look at the performance of US stocks on the recent CPI night in the United States.

Although overall returns on the S & P 500 have been neutral on CPI release day in the past two years, US stocks have fallen more on CPI release day since Federal Reserve Chairman Powell stopped using the word "temporary" to describe inflation in November, according to Bespoke Investment Group.Especially in the past four CPI release days, U. S. stocks have closed down!

In the past six days of CPI release, the S & P 500 has mostly declined. In terms of sector performance, energy stocks performed best on CPI launch day, with a median gain of 1.1 per cent, while the technology sector performed worst, with a median decline of 1.1 per cent.

Bespoke pointed out that for a market worried about inflation, the recent report did not bring much comfort to investors. In the past 24 months, only three months' overall CPI has been lower than expected (released on June 10, 2020, December 11, 2020 and September 14, 2021, respectively).

Ironically, the S & P 500 actually fell for each of the three days. To be fair, however, all three reports were released before Powell abandoned the use of the word 'temporary'.

Analysts sayTonight's inflation report is likely to affect not only the next round of trading in the market, but also the Fed's interest rate decisions later this year.Us stocks may have reacted ahead of the Fed's June interest rate meeting next week, which is widely expected to raise interest rates by 50 basis points in both June and July.

What worries the market most now is that near the last hour of the close last night, the three major indexes of US stocks collectively staged a sharp dive.Traders are scrambling to take action ahead of the CPI report, suggesting that the market seems to be really worried that the CPI data released tonight may remain high.They prefer to wait and see before the data are released, and then decide on the next strategy when the data dust settles.

On the other hand, the White House admits that it is not optimistic about the high inflation in the United States. Us Treasury Secretary Yellen recently expects inflation to remain high.

On Thursday, the White House again vaccinated the inflation data in advance, and the new White House Press Secretary Karine Jean-Pierre revealedInflation data to be released on Friday are likely to show more evidence of high inflation.

We expect headline inflation data to rise, and the conflict between Russia and Ukraine is expected to have some impact on core inflation, especially if you take into account the impact of rising air ticket prices and jet fuel prices.

Will the CPI data be as expected this time?

Is there going to be a strong rally in US stocks tonight?

Or is it suppressed by inflation data?

Niu friends are allWhat operational strategies have been prepared?

Hold your breath together and wait!