Inflation Data Dashes Hopes of Near-Term Fed Pivot, Though Stocks Rebound on Cautious Optimism
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January CPI data showed inflation persisting, disappointing expectations of a decline. This pushed back forecasts for the Fed's first rate cut to June.
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Shelter/housing costs accounted for over half of January’s inflation and had the largest increase in 11 months.
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Wednesday saw a stock rebound helped by comments that investors shouldn't overreact to one month's inflation data.
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Tech stocks remained strong, with Nvidia becoming the 3rd most valuable U.S. company ahead of its upcoming earnings.
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Upcoming economic data and Fed comments will continue steering market forecasts around growth, inflation and interest rates.