Here's a question on the minds of investors amid recent hotter-than-anticipated inflation readings and this powerful rally: Are we due for a stock market scare? The S & P 500 has shot up over 25% since the late-October lows. The ascent came as investors raised their expectations for faster declines in the rate of inflation and anticipated speedy and deep rate cuts from the Federal Reserve.
Coupled with the continued high costs for groceries, this means consumers will feel a pinch from those two sensitive prices in the weeks and months ahead. The bright spot on the energy front has been the persistent drop in natural gas, the feedstock for power generation and heating or cooling our homes. That price has remained stuck at historically low levels, offering some price relief on that front.