Bullish Stocks Narrative Seen Intact After U.S. Inflation Data
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The Wall Street consensus that has lifted stocks to records in the first quarter remains intact despite a cooldown in the Federal Reserve's preferred gauge of underlying inflation last month. The core personal consumption expenditures price index rose 0.3% from the prior month, slowing from January's strong reading. The data suggests that while inflation has cooled, it remains higher than the Federal Reserve would like, limiting the scope for interest rate cuts this year. Fed Chair Jerome Powell said the data is what he was expecting and that it's more along the lines of what they want to see. The benchmark S&P 500 has broken its record 22 times this year, boosting US equity values by $4 trillion. Concerns arise over the mismatch between spending and income, as higher spending boosts the economy short-term but is unsustainable in the long run.

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https://www.bloomberg.com/news/articles/2024-03-29/bullish-stocks-narrative-seen-as-intact-after-us-inflation-data