A closely watched U.S. inflation report next week could help settle one of Wall Street’s most pressing questions: whether the market has correctly pegged the near-term trajectory for interest rates.
Following last month’s banking crisis, investors have become more convinced the Federal Reserve will cut rates in the second half to ward off an economic downturn. Such bets have pushed bond yields lower, supporting the giant tech and growth stocks that hold sway over broad equity indexes. The S&P 500 (.SPX) has gained 6.9% so far in 2023.
Source : Wall St Week Ahead: US inflation figures could disrupt market’s projections for future Fed easing