Inflation report poses test for stocks rally as Fed meeting looms
An inflation report in the coming week will test the strength of the record-setting U.S. stocks rally and provide a crucial piece of data that could factor into the Federal Reserve's plans for rate cuts. The rosy backdrop for stocks is underscored by expectations of further Fed interest rate cuts at the same time the economy remains resilient. However, data on consumer prices due on Wednesday could threaten the upbeat narrative if inflation rates are above expectations, posing a challenge for high-flying stocks.
