The road to year-end gains for stocks will be hammered by volatility as investors try ‘sniffing out’ a rollover in inflation and a Fed U-turn on rates
- Stocks powered higher this week after the October inflaton report but the path to year-end gains remains volatile, market analysts say.
- Inflation may have peaked but CPI at 7.7% is still well above the Fed’s 2% target.
- ‘I think that we’re set up to rally into the end of the year … It won’t be a straight-up rally,” Nancy Tengler of Laffer Tengler Investments says.
The sharpest jump in stocks in two years was sparked this week by a report of cooling inflation, though analysts say that while further equity gains could be in store this year, the Federal Reserve is unlikely to deliver the so-called pivot investors are longing for.