US stock market indexes — S&P 500, Dow Jones, and Nasdaq — are set to be driven by inflation data even as investors worry that President Donald Trump’s tariff plans are endangering Wall Street’s hopes for interest rate cuts this year.The monthly consumer price index due on Wednesday offers the latest read on inflation trends, a key investor concern. A survey of over 4,000 traders published this week showed inflation and tariffs are the factors expected to have the biggest sway on markets this year, Reuters reported.
“Inflation really is the wildcard for 2025 in terms of how it’s going to impact the interest rate environment,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “In the event that we have higher inflation, it really reduces the opportunity for the Fed to continue cutting rates, and obviously markets don’t like that.”
“Inflation really is the wildcard for 2025 in terms of how it’s going to impact the interest rate environment,” said Charlie Ripley, senior investment strategist for Allianz Investment Management. “In the event that we have higher inflation, it really reduces the opportunity for the Fed to continue cutting rates, and obviously markets don’t like that.”
The January report is expected to show an 0.3 per cent increase in…
