Slowing US inflation shifts investor focus to earnings season

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Inflation data showing U.S. consumer prices rising less than expected in March may have come as a relief to markets, but some investors believe it may take a strong corporate earnings season to push stocks higher decisively.

"It feels like stocks are trading a little too much on interest rates," said Craig Bergstrom, chief investment officer at hedge fund Corbin Capital Partners. While the trajectory of rates will continue to matter, "business prospects for companies are going to be more important in the long term."from the same quarter last year, according to Refinitv data.

That weakness would come on the heels of a 3.2% earnings fall in the fourth quarter of 2022, a back-to-back decline known as anAt the same time, Wednesday’s comparatively benign inflation number may offer little insight on whether Wall Street has correctly pegged the Fed’s near-term monetary policy trajectory. While the central bank has said rates will likely stay around current levels of 4.

 

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Stocks open little changed as investors await March inflation report: Live updatesTwo key economic data points weigh on the minds of investors this week: the latest consumer price index and the producer price index readings.
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