The March inflation data lowered rate cut expectations. Here's why stocks could take that in stride

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Some investors say that markets will be able to cope so long as the Fed doesn't raise rates again.

The March inflation report came in hotter than expected, but some investors say stocks will be able to absorb the shock — so long as the Federal Reserve doesn't suddenly turn more hawkish. Stocks moved dramatically lower after the latest consumer price index reading showed a reacceleration compared to February, raising fears that the central bank will keep interest rates higher for longer. The Dow Jones Industrial Average at one point tumbled more than 500 points, or 1.4%.

Wells Fargo's Chris Harvey says 'I don't feel bullish' — a day after hiking S&P year-end target to highest on Street

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