Morgan Stanley Strategists See Inflation as Key for Path of Stocks

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Michael Wilson,Bloomberg,Federal Reserve

(Bloomberg) -- Next week’s US inflation print looms as key for the trajectory of equities and wagers on Federal Reserve interest rate cuts, according to...

-- Next week’s US inflation print looms as key for the trajectory of equities and wagers on Federal Reserve interest rate cuts, according to Morgan Stanley strategists.Xi Begins Europe Tour in Paris as Macron Seeks to Reset Ties

“The price reaction on the back of this release may be more important than the data itself given how influential price action has been on investor sentiment amid an uncertain macro set up,” Wilson said.The S&P 500 has climbed over the past two weeks amid optimism that Fed easing is still likely this year, with solid corporate earnings supporting sentiment. The US benchmark closed Friday above 5,100 points, about 14% higher than Wilson’s 12-month target of 4,500.

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Morgan Stanley Strategists See Inflation as Key for Path of StocksNext week’s US inflation print looms as key for the trajectory of equities and wagers on Federal Reserve interest rate cuts, according to Morgan Stanley strategists.
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