Bullish Stocks Narrative Seen Intact After US Inflation Data

  • Inflation view won’t shift, Richard Bernstein Advisors says
  • Mismatch between spending and income is worrying, Sosnick says
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A cooldown in the Federal Reserve’s preferred gauge of underlying inflation last month, coupled with a rebound in household spending, failed to shift the Wall Street consensus that has lifted stocks to records in the first quarter.

The so-called core personal consumption expenditures price index, which strips out the volatile food and energy components, rose 0.3% from the prior month, slowing from January’s surprisingly strong reading.