In a surprise turn of events, the latest inflation data has given markets a glimmer of hope as prices cooled slightly more than expected. The consumer price index rose 0.2%, marking the smallest increase in four months and sending spirits soaring.
The small rise was enough to boost confidence that the Federal Reserve can adjust its interest rates to combat a stalled economy, one of its most crucial tools for preventing recession. This news also alleviated concerns about stagflation, a feared economic downturn characterized by high inflation and stagnant growth.
David Kostin, chief US equity strategist at Goldman Sachs, has identified three key factors that could drive a swift recovery in the stock market: a change in the economic growth outlook, attractive valuations, and depressed investor positioning. According to Kostin, only one of these factors needs to be triggered for the rally to restart.
Meanwhile, we have other news in markets, tech, business, and beyond. We’ll get into those stories in future issues.
Please note: If you’re considering selling your house this spring, think again. The latest budget cuts may make it a completely different market season. Stay tuned for more updates from the world of finance.
Source: https://www.businessinsider.com/markets-rise-may-soon-recover-tariff-upheaval-inflation-data-2025-3