Markets & trading FAQ

The CPI measures US inflation. A hotter-than-expected print pushes the Fed to keep rates high, which weighs on stocks and risk assets; a softer print fuels hopes of a rate cut and supports the market.

Gold is priced in dollars. When the greenback strengthens, an ounce becomes more expensive for buyers in other currencies, which cools demand and pressures the price.

At 8:30 a.m. Eastern, which is 2:30 p.m. in Paris. It is one of the most closely watched macro releases of the month.

Persistently expensive crude raises energy, transport and production costs. These pressures feed into consumer prices and make it harder for central banks to bring inflation back to target.

In risk-on mode investors favor risk assets such as stocks or crypto. In risk-off mode they rotate into safe havens like the dollar, gold or government bonds.

The FOMC is the Federal Reserve's monetary policy committee. It meets eight times a year to set the policy rate, a decision that directly moves stocks, the dollar and gold.

The VIX gauges the expected 30-day volatility of the S&P 500 based on options prices. Above 20 it signals higher-than-normal nervousness; below 20, calmer markets.

About a fifth of the world's oil passes through Hormuz. Its closure had built a risk premium into prices; reopening it removes that supply threat, so prices fall.

The Fed keeps its policy rate unchanged. In June 2026 the range is still expected at 3.50-3.75%, with markets focused on the statement's tone and the projections.

It is the extra yield investors demand to hedge against higher-than-expected inflation, here fueled by the spike in oil prices.

Cheaper oil lowers costs for companies and households and eases inflation pressure. That gives central banks more room to cut rates, which tends to support equity markets.

Close to a fifth of the world's oil passes through the Strait of Hormuz. Any threat to the passage pushes energy prices up, while reopening it sends them lower and eases inflation fears.

The dot plot is a chart where each Fed official marks their expected path for the policy rate. Investors read it to gauge how many hikes or cuts the central bank foresees.

A central bank raises its policy rate when inflation stays above target. Higher rates cool demand but weigh on stocks and tend to lift the dollar.

It is the chart where each Fed official anonymously marks where they expect the policy rate over the coming years. The median of those dots gives the market a guide to likely hikes or cuts.

Close to a fifth of the world's oil passes through this channel between the Gulf and the Indian Ocean. Any threat to traffic lifts prices, while any reopening eases them.

The dot plot is the chart where each Fed committee member anonymously marks the policy rate they expect. When the dots move higher, they signal a more restrictive, hawkish stance.

CNN's Fear & Greed Index sums up market mood on a 0 to 100 scale. Below 25 signals fear, above 75 greed, and a reading near 37 points to cautious, risk-averse sentiment.

The PCE is the price index tied to consumer spending and the Federal Reserve's preferred inflation gauge. A high PCE pushes the Fed to keep rates elevated, which weighs on stocks, while a softer reading supports risk assets.

The Middle East accounts for a large share of oil production and transit, notably through the Strait of Hormuz. Any threat to supply, such as a conflict involving Iran, lifts crude prices and can rekindle inflation.

A strong dollar makes dollar-priced commodities and US exports more expensive and tightens global financial conditions. It often pressures gold, emerging-market currencies and risk assets.

Raising the policy rate makes credit more expensive and cash more rewarding, which dims the appeal of stocks and crypto. It tends to support the dollar while weighing on gold and other risk assets.

A higher policy rate raises borrowing costs and lifts the risk-free return, which dims the appeal of equities, especially tech stocks whose valuations rest on future earnings.

In a price-weighted index like the Dow Jones, each stock counts according to its share price, not its market value. A higher-priced stock therefore moves the index more than a cheaper one.

Buying the dip means stepping in after a market drop, betting on a rebound. The approach carries real risk if the decline keeps going instead of reversing.

Nonfarm payrolls gauge the strength of the labor market, which the Fed watches closely. A hot or cold print shifts rate expectations and quickly moves stocks, the dollar and gold.

Released monthly by the BLS, it tracks nonfarm payroll growth and the unemployment rate. It is one of the most watched indicators because it shapes expectations for Fed policy.

When a handful of large stocks, often in tech, drive most of an index's gains, the rally is called narrow. It leaves the market more exposed if those names turn.

It gauges the health of the labor market, which drives the Fed's rate decisions. A strong or weak print shifts expectations and moves stocks, the dollar and bonds.

The central bank favors high rates, or even hikes, to contain inflation. Costlier credit tends to weigh on growth stocks.

It is the expected trajectory of the US policy rate. Markets reprice it with each jobs or inflation release, which moves bond yields, the dollar and equities.

A cooling labor market strengthens bets on a Fed rate cut. Cheaper money supports valuations, which is why equities often rally on disappointing payroll figures.

They are the detailed record of the Fed's last meeting, released three weeks later. Investors scan them for the members' tone on inflation and the timing of policy rate cuts.

When a company joins a major index like the Nasdaq 100, funds that track the index must buy the stock, creating mechanical and sometimes large flows that can weigh on the rest of the index.

AI-linked stocks often trade at rich multiples. When demand or margins are questioned, investors sell quickly, which magnifies swings across the technology indices.

Gold is priced in dollars and pays no interest. When the Fed sounds firm and the greenback climbs, holding metal becomes costlier than interest bearing bonds, which weighs on the price even during geopolitical tension.

Earnings season is the stretch when companies report their quarterly results. In the US it opens with the big banks and sets the market's tone: profits above expectations lift the indexes, while disappointing numbers pull them down.

Retail sales track household spending, the main engine of the US economy. A strong number reassures investors about growth; a weak one revives slowdown fears and weighs on stocks.

The SOX (Philadelphia Semiconductor Index) tracks about 30 US chip stocks. Highly sensitive to the cycle and to AI demand, it serves as the sector's benchmark.

It's the price swing options markets expect right after an event like earnings. It comes from short-dated options pricing. The higher it is, the bigger a reaction traders expect.

When a company raises its AI spending above what investors expected, near term profit and free cash flow take a hit. Shares can fall even with strong revenue growth, until that spending proves it pays off.

Higher tariffs raise the cost of imported goods and can squeeze corporate margins and global growth. Markets also worry about retaliation from targeted countries, which adds to the uncertainty.

Chip-related tech names carry heavy weight in the Nasdaq. When giants like Nvidia fall sharply, the index follows mechanically, even if other sectors hold up better.

A surprise hike tightens financial conditions faster than expected. It typically pushes the dollar and bond yields higher, and weighs on stocks and gold until the market prices in the new rate path.