Stocks Rally Despite Uncertainty: Can Cooling Inflation Offset Trade War Fears?

Despite ongoing market turbulence, Wall Street has seen a strong rally as investors weigh cooling inflation against escalating trade war concerns.

[{"selector":"#anim-6247f268-bc65-4b4c-a2a6-5932a4ce2e99","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-2d9b4eab-d54f-49af-a5fa-54d028eac79d","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Recent economic data shows inflation slowing, easing pressure on the Federal Reserve to raise interest rates.

[{"selector":"#anim-4ae40388-f207-4d98-bc49-1c578546bba9","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-cd02386f-2df8-4400-9177-059659a47796","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Lower inflation boosts consumer spending and corporate profits, fueling stock market gains.

[{"selector":"#anim-bbf3da99-c3a8-425d-b66e-e059d4f2f0d3","keyframes":{"transform":["rotate(-540deg) scale(0.1)","none"],"opacity":[0,1]},"delay":0,"duration":1000,"fill":"both","iterations":1}]

Higher interest rates make borrowing more expensive, affecting both businesses and consumers.

[{"selector":"#anim-0a5d956e-7c05-40bf-9ae9-f1685b3a221c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

Investors speculate that the Fed may pause or cut rates, making borrowing cheaper and driving stock valuations higher.

[{"selector":"#anim-11efce29-4288-4682-8259-fdd01de7318c","keyframes":[{"offset":0,"transform":"translate3d(0, -431.11119%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.29,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.45,"transform":"translate3d(0, -121.228466628%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.61,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.71,"transform":"translate3d(0, -41.214229764%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.8,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.85,"transform":"translate3d(0, -15.476891721000001%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.92,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.96,"transform":"translate3d(0, -6.725334564%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":1,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"}],"delay":0,"duration":600,"fill":"both"}]

The U.S.-China trade dispute continues to create uncertainty for businesses and global supply chains.

[{"selector":"#anim-78103632-006a-4da3-88f8-d02454625918","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-e40ad876-6b0b-4796-b3d0-295bd7ac1c4e","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Many companies have posted better-than-expected quarterly results, reinforcing bullish market sentiment.

[{"selector":"#anim-7190be0a-f853-4724-b325-e1acb3d7105d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}]

Despite economic worries, Americans are still spending on travel, entertainment, and retail.

[{"selector":"#anim-cba68dc5-7833-477c-b96e-ae2cfc4ba12c","keyframes":{"transform":["rotate(-540deg) scale(0.1)","none"],"opacity":[0,1]},"delay":0,"duration":1000,"fill":"both","iterations":1}]

Liked What You Say? View More