Strong Economic Data Fuels Stock Market Rally Even As Inflation Looms

US economic data showing stronger growth forecasts and inflation is boosting confidence in the stock market rally.

Many economists are revising UP their GDP growth estimates for Q1 and Q2 based on recent economic data.

Stronger economic growth provides a good backdrop for stocks if inflation proves stickier than expected.

Signs of market breadth emerging with equal-weight S&P 500 and small caps recently hitting highs.

Questions remain if market optimism about Fed rate cuts is valid given latest economic data.