Lower interest rates, declining inflation and higher corporate profits could power stocks’ rally through the year-end. However, investors should pay close attention to the November consumer price index data to be released next Wednesday.
Lower interest rates, declining inflation, and higher corporate profits could power the U.S. stock market rally through the year-end, but investors should pay close attention to the November consumer price index data to be published on Wednesday this week as it may be the last wild card that could upset expectations for a Federal Reserve interest rate cut in December.
“We haven’t got any surprises out of Friday’s labor market data or inflation surprises. And we haven’t seen any surprise to the downside on corporate profits,” Thomas Hainlin, senior investment strategist at the U.S. Bank Asset Management Group, said in a phone interview. Such a setup has provided a supportive environment for risk assets, such as stocks and cryptocurrencies, noted Hainlin.
