A Tale of Two Trends: Why Cooling Inflation Isn’t Enough to Calm Stock Market Jitters.

The stock market is riding a wave of uncertainty, despite inflation showing signs of cooling.

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Even with inflation slowing, the Federal Reserve remains cautious about cutting interest rates too soon.

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Investors had hoped for aggressive rate cuts, but mixed economic data has fueled uncertainty about the timing and magnitude of policy shifts.

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Many companies have benefited from price hikes, but with inflation easing, profit margins could shrink.

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Despite cooling inflation, market swings remain frequent, driven by economic uncertainty, geopolitical risks, and changing monetary policy expectations.

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While declining inflation is a step in the right direction, it alone isn’t enough to stabilize the market.

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Until investors see clearer signals from the Fed, stronger earnings, and trade stability, stock market jitters will persist.

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If consumer spending weakens, companies may struggle to justify high stock valuations, leading to potential market pullbacks.

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