Stocks flash bullish signal as inflation to roll over by summer: Fundstrat

That could bring downward pressure to 48% of the consumer price index, and suggest that over 80% of the CPI is facing disinflationary pressures, Lee estimated.

"Our base case framework is that inflation will soon roll over hard over the summer," he wrote."The forward indicators argue a steep drop is coming.", prompting Fed officials to hike interest rates over 1,700% to tame high prices. That weighed heavily on stocks, with the S&P 500 slumping 20% last year.

Markets are expecting the Fed to raise interest rates another 25 basis-points at their next policy meeting, and officials have suggested rates could stay restrictive all year as high prices still remain a threat. Still, a pullback in inflation could ease pressure on firms and lead the central bank to dial back rates, which Lee previously said could jumpstart a new bull market for stocks.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks can 'hold up quite well' after an earnings recession, BMO saysFears of an earnings recession are overblown and investors shouldn't panic sell as stocks will hold up fine, BMO chief strategist says
Source: BusinessInsider - 🏆 729. / 51 Read more »

Individual Investors Are Still Hungry for Stocks—While Shunning RiskThe net $77.7 billion in equities and ETFs purchased by individuals in the first quarter is near a record.
Source: WSJ - 🏆 98. / 63 Read more »

High LNG stocks in North Asia, weak demand leads to more storage at seaVolumes of liquefied natural gas (LNG) stored at sea have increased on an annual basis this month, driven by more vessels in Asia amid high inventories and slow spot demand in Japan, China and South Korea, analysts say.
Source: Reuters - 🏆 2. / 97 Read more »

Asia stocks off to slow start in earnings-rich weekAsian shares started cautiously in a week packed with economic data and central-bank meetings.
Source: Reuters - 🏆 2. / 97 Read more »

Column: U.S. diesel stocks tighten but fear of shortage easesU.S. inventories of distillate fuel oils such as diesel and heating oil have been depleting since the start of March, reversing some of the accumulation over the previous five months, mostly because of an acceleration in exports.
Source: Reuters - 🏆 2. / 97 Read more »

Asia stocks in pensive mood for earnings-packed weekAsian shares started cautiously in a week packed with economic data and central-bank meetings.
Source: Reuters - 🏆 2. / 97 Read more »