Stock Rally Fades With Fed on Tightrope After Data: Markets Wrap
- US consumer sentiment slumps as inflation expectations rise
- Fed officials keep signaling need for higher-for-longer rates
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The stock market struggled to gain much traction after data pointed to an economy that is slowing amid stubborn inflation, posing a challenge to the outlook of Federal Reserve policy.
Equities wavered and bond yields rose following a report that showed US consumer sentiment declined to a six-month low as short-term inflation expectations picked up. While a slowdown in key sectors has encouraged bets on Fed rate cuts, a chorus of officials continued to echo the higher-for-longer mantra as they try to bring inflation back to the 2% target.