Investors may see the US stock market rally in the coming weeks due to lower interest rates, declining inflation, and higher corporate profits. However, a key event could still pose a threat: the November consumer price index data set for release on Wednesday.
According to Thomas Hainlin, senior investment strategist at U.S. Bank Asset Management Group, Friday’s labor market data showed no significant surprises. Similarly, corporate profit expectations were met without any downward surprises. This setup has been favorable for risk assets like stocks and cryptocurrencies.
A potential Fed interest rate cut in December is still on the table, but investors should remain vigilant about the November consumer price index data, which may affect their expectations. The balance between a strong rally and a possible surprise from this last wild card will be crucial to watch as the year-end approaches.
Source: https://www.marketwatch.com/story/stocks-and-crypto-could-rally-through-year-end-but-watch-for-this-last-wild-card-34509487