The market wants a Federal Reserve interest-rate cut soon, but it doesn’t want to need one.
Wall Street economists are fixated on identifying tariff effects, yet stocks either celebrated or shrugged off three warm and sticky inflation readings this week, laboring to hold near record highs.
The S&P 500 immediately processed a moderately elevated consumer price index report Tuesday as solidifying the chances for a September cut by the Fed into a still-steady economy, logging on that day slightly more than what would become a 0.9% gain for the week.
Notably, over the next three days — through a hot but noisy producer price index reading and a messy University of Michigan consumer-sentiment survey — the benchmark treated Tuesday’s closing level just under 6,450 as a floor, testing it repeatedly and finishing the week right on it. The index has now logged a total return of 10% year to date, having more than recovered the near-20% tariff-panic collapse in April.
Source: https://www.cnbc.com/2025/08/16/stocks-power-to-record-highs-again-despite-warning-signs-can-the-markets-strong-run-continue.html