There has been cooling inflation in recent months. However, the United States has still been fighting to control inflation rates. The Federal Reserve’s switch to a more hawkish monetary policy has pushed consumers’ costs of living higher.
The U.S. Consumer Price Index (core CPI) sent shockwaves through Wall Street in April after coming in at a hotter-than-expected 3.
6% , putting earlier hopes of Q1 2024 interest rate cuts on ice. Despite CPI hitting expectations in June 2024, the Fed held interest rates at 5.25% .
But how can this help used and discount clothing retailers to improve their position on Wall Street? As the summer months approach, more consumers will be conscious of adapting their wardrobes for warmer weather. With lingering high living costs and interest rates, we’re more likely to see cost-effective retailers flourish as the summer holidays approach. With consumer spending power likely to be impacted for longer than expected by 2024’s CPI data, the summer could be a prosperous time.
Here are three stocks that could benefit from cooling inflation: Stocks to Buy During Cooling Inflation: eBay Inc (EBAY) Looking at the 2008 financial crash and subsequent recovery, eBay (NYSE: EBAY ) is an example of a stock that is well-suited to serving cash-strapped consumers. The reselling platform more than doubled in value throughout 2009 and 2010. They also posted 23.
59% growth over the first half of 2024 amid lingering economic challenges for many U.S. retailers.
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