[Altos Weekly Traders Edge] What to Know About the U.S. Inflation Report..Details Inside

Hello Traders! We hope you find this weekly FREE newsletter filled with information that helps your trading day! ChatGPT is causing a disruption in the stock market... but is it good or bad?! Today we talk about a report about a day trading system that might be too good to be true... Also, is a soft inflation data to be released today really will make the stock market go up? Let's find out! Thanks for reading and good luck in the markets today!! The Team at Altos Trading The Most Powerful Patterns in the Stock Market These 5 unique patterns have proven to be incredibly historically accurate. Most investors have no idea which price patterns work and which don’t… And it may SHOCK you when you see which one performs best. [LEARN THIS TODAY]( By clicking the link above you agree to periodic updates from WealthPress and its partners ([privacy policy]( SPONSOR ⬆️ MARKET NEWS A Stock Market Commotion is Getting Caused by ChatGPT The tech world is witnessing a storm of epic proportions, and artificial intelligence (AI) is in its eye. This groundbreaking technology is causing a stir on Wall Street, too, as investors scramble to get in on the action. Generative AI, a type of artificial intelligence capable of generating original ideas in the form of text, video, or other media, is still in its infancy. Despite this, it's already making a significant impact on companies, schools, governments, and the general public. One of the reasons for its popularity is its ability to process enormous amounts of information and create sophisticated content in response to user prompts. Big technology companies are investing billions of dollars in AI, while startups race to raise cash and develop business models that harness its power. Investors are trying to determine how much AI will disrupt companies, industries, and contemporary business practices, and they're placing bets accordingly. This frenzy of activity has led to volatile stock movements; for instance, chipmaker Nvidia's shares have surged, while study-materials company Chegg's shares have plummeted. The excitement surrounding AI's potential is one reason why big tech companies are among the top performers this year. Generative AI chatbots, such as ChatGPT, have quickly gained popularity. Analysts at Goldman Sachs noted that ChatGPT reached 100 million users in just two months, setting a record for the fastest-growing app. By comparison, TikTok took nine months and Instagram required 30 months to achieve the same milestone. Apple CEO Tim Cook, speaking on a conference call with analysts, said, "We view AI as huge, and we'll continue weaving it in our products on a very thoughtful basis." Apple isn't the only company taking notice; more than 300 mentions of "generative AI" have appeared on company conference calls worldwide this year, according to data from AlphaSense. Before 2023, the phrase was barely mentioned. Major health systems are experimenting with AI to determine whether it can help increase the productivity of their medical staff. Entrepreneurs and venture-capital investors are hoping that generative AI will revolutionize industries from media production to customer service to grocery delivery. Even Coca-Cola has told investors that it's dabbling with the technology. Investors are speculating whether generative AI is the latest technology with the potential to disrupt entire industries. For example, online streaming led to the demise of home-video-rental companies like Blockbuster, and phone cameras contributed to the obsolescence of photo processing, fueling Apple's rise and Kodak's decline. Michael Green, chief strategist at Simplify Asset Management, believes that artificial intelligence is "almost certainly overhyped in its initial implementation," but adds that "the longer-term ramifications are probably greater than we can imagine." Microsoft's market value increased by nearly $500 billion after the tech giant announced a $10 billion investment in startup OpenAI, the developer of ChatGPT, in January. Shares of Nvidia, which manufactures chips needed to power chatbots, have risen 96% this year. Google parent Alphabet lost $100 billion in market value in a single day earlier this year after its chatbot Bard disappointed investors, although those losses were quickly recouped. Alphabet shares have risen by 22% this year. Daniel Morgan, senior portfolio manager at Synovus Trust, suggests that these stock movements may be temporary as the true power of AI technology becomes clearer. He says, "The most difficult thing to ascertain is, what is going to be the impact of all that spending to these companies on revenues and profits?" Morgan's fund owns shares of Microsoft, Alphabet, and Nvidia. Investor interest in AI has driven up valuations. Nvidia trades at 164 times its past 12 months of earnings, according to FactSet, while Microsoft and Alphabet trade at 33 times and 24 times, respectively. Portfolio managers emphasize that understanding the implications of AI's emergence is crucial for investing in the technology's winners and avoiding its eventual losers. Chegg's shares fell 48% last week after the study-materials company reported that ChatGPT's rise was negatively impacting its ability to attract new customers. Will Graves, chief investment officer at Boardman Bay Capital Management, highlights the uncertainty surrounding AI's ripple effects, saying, "You just don't know all the knock-on effects." He points out that no one foresaw how the introduction of the iPhone would lead to the creation of Uber and its subsequent impact on the taxi industry. As AI continues to develop and reshape various industries, businesses, and governments must stay informed and adapt to capitalize on its potential benefits. Investors, too, must remain vigilant and flexible in their strategies, as AI's long-term effects on industries and individual companies could be both profound and unpredictable. The rise of artificial intelligence represents a turning point in the tech world, and as its influence spreads, stakeholders must be prepared to navigate the new landscape it creates. OUR LATEST DISCOVERY! How to Forecast Stocks, EFT's, Futures, FOREX and Crypto Currencies - up to three days in advance!! [LEARN MORE TODAY]( CLICK HERE ⬆️ MARKET NEWS Stock-Market Volatility Ahead? What to Know About the U.S. Inflation Report Investors are eagerly awaiting the US April inflation report later today, as any significant deviation from predictions may lead to losses for those expecting the Federal Reserve to maintain unchanged interest rates at its upcoming meeting. The potential end of the year-long monetary tightening cycle also raises the possibility of rate cuts later this year. Economists surveyed by Dow Jones predict that the April consumer price index (CPI) from the Bureau of Labor Statistics will show a 0.4% monthly increase and a 5% annual rise. This marks a stark contrast to March's modest 0.1% month-over-month gain, which was the smallest increase in two years. The core price measure, excluding volatile food and fuel costs, is expected to rise 0.3% from the previous month, or 5.4% year over year. A team of economists led by Carl Riccadonna, chief US economist at BNP Paribas, anticipates another challenging inflation report in April's CPI. Despite this, Riccadonna suggests that the report's details might offer a "slightly more optimistic signal." His team expects to see further moderation in non-housing services costs, which the Fed considers the most crucial inflation component. However, they also predict that a rebound in used car prices will drive strong headline and core prints. Fed officials are likely to be cautious in acknowledging progress on inflation, as premature optimism may lead to a "false dawn." Policymakers will probably require several more months of sustained improvement before they alter their inflation assessment. Following last week's Fed decision and Jerome Powell's news conference, stock-market investors appear confident that the 25-basis-point rate hike marked the end of the central bank's interest-rate hiking campaign. According to the CME FedWatch Tool, Fed funds futures traders have priced in an 83.4% probability that policymakers will not change rates at their June meeting. They also factor in the possibility of at least two or three rate cuts by year-end. Inflation is only slowly retreating from the 40-year high seen in the past year, making it too early for the Fed to modify its policy. Chair Powell stated last week that the process of bringing inflation back down to 2% "has a long way to go," while reiterating that future data will determine the necessity of additional interest rate increases. Michael Kramer, founder of Mott Capital Management, believes that the CPI report on Wednesday will likely cause "a lot of volatility in markets before and after the data release." He explains that the Fed's data-dependent approach means that higher inflation data will lead to more rate hikes, increasing overall market volatility ahead of the June FOMC meeting. Melissa Brown, managing director of applied research at Qontigo, states that a higher-than-expected inflation print may not necessarily signal more rate hikes, but it does imply that the central bank will not cut rates any time soon. "Inflation numbers are going to be really important to confirming or denying what the market seems to be thinking," she says. High inflation could continue to put pressure on corporate earnings, as rising fuel, material, and wage costs indicate downward trends in earnings-per-share and margins. Brown notes that first-quarter earnings have not shown a significant impact, but it remains to be seen if this will change in the second quarter as costs continue to rise. Adding to the volatility concern is the low trading volume ahead of Wednesday's CPI report, which Brown interprets as a "lack of conviction" in the stock market. However, Kramer points out that the CPI report has become less critical to the market over the past few months as the rate of change continues to diminish. Nevertheless, the April report holds some importance, as any deviation in the data could devastate those expecting inflation to return to the Fed's target soon. The April report's significance lies in the fact that year-over-year comparables are expected to ease between now and July. Any deviation from the anticipated data could have a significant impact on those expecting a swift return of inflation to the Fed's target levels. In the past year, CPI data publication days have been among the most volatile for stocks, as price pressures have become a chief concern for investors and the Fed. In 2022, the S&P 500 recorded both its largest daily gain and its largest daily loss on the day that monthly CPI data were released, according to Dow Jones Market Data. As investors prepare for the release of April's inflation report, market volatility is expected to remain a concern. The uncertainty surrounding the future trajectory of inflation and its potential implications for interest rates make it crucial for investors to pay close attention to the upcoming CPI data. To conclude, the April inflation report holds considerable importance for investors, as it may provide an indication of whether the Federal Reserve will maintain its current interest rate policy or make changes in the near future. Any significant deviation from the predicted data could lead to losses for those expecting the Fed to keep interest rates unchanged or potentially cut rates later this year. The impact of the report on corporate earnings, market volatility, and investor sentiment will also be closely monitored, as these factors play a critical role in shaping the financial landscape moving forward. One Trading Legend... 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Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street Suite 169 Boise Idaho 83714 USA [Unsubscribe]( | [Change Subscriber Options](