Inflation dominates headlines, but not Wall Street

Filed 44m ago · Via Courthouse News · The Buffoon Desk

THIS STORY IS SCORED

Fox Tale Waltz Part 1 Instrumental

Kevin MacLeod · incompetech.com · CC BY 4.0

Photo: Agnieszka Kwiecień, Nova · CC BY-SA 4.0 · via Wikimedia Commons

Despite a New York Fed report finding that tariffs added 2.9 percentage points to goods price inflation, and without them prices would have slipped slightly, the S&P 500, Nasdaq and Dow all posted weekly gains. Brent crude climbed near $106 a barrel and bond yields hit fresh 24-year highs over the same stretch.

Fed officials, including governor Christopher Waller, now expect additional rate hikes by year end, citing tariffs, Middle East energy prices and the AI buildout as drivers of stubborn core inflation. Waller had previously pushed for rate cuts before reversing course this summer.

Meanwhile, a University of Michigan survey found 54% of respondents plan to cut spending over tariff and gas price worries, and the Institute for Supply Management recorded the highest services prices-paid reading since mid-2022.

The full dispatch is available from the source below.

✒ FROM THE EDITORIAL DESK

You can have inflation warnings stacked up like firewood and still watch the stock market throw itself a party. That's the trick of it: the folks buying stocks aren't the ones checking the receipt at the gas pump. The tariffs show up on one side of the ledger and the record highs show up on the other, and somebody's going to have to explain how both are true at once.

Source: Read the original at Courthouse News → Scored: Fox Tale Waltz Part 1 Instrumental · Kevin MacLeod · CC BY 4.0