Stock market outlook: S&P 500 can rally 20% if it clears 3 hurdles

seen in April. That's a sign that inflation pressures could be abating in the economy, as higher wages can influence prices to move up as well.

Easing inflation pressures could signal upside in stocks, Lee said, as it would allow the Fed to pause or dial back interest rates hikes. Fed officials have raised rates aggressively over the past year to combat inflation, which weighed heavily on equities in 2022. He pointed to three key indicators in stocks that could flash in the next month and cement the S&P 500's trajectory for the rest of the year:May inflation data will be critical into determining the path of stocks, Lee said. If core inflation clocks in below a 0.4% monthly increase or below a 5.5% yearly increase, that will boost the odds the Fed will pause its rate hikes, which is likely to spur a rally in stocks.

The May consumer price index report is slated to be released on June 13. But markets have already dialed back their inflation expectations significantly, with an estimate of five-year average inflation five years from now dropping to 2.25% over the last week, according to

Source: News Formal (newsformal.com)

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock futures are little changed after the S&P 500’s best week since MarchInvestors are focused on what has so far proven the narrow breadth in the market in 2023, and looking ahead to PMI data Monday morning.
Source: CNBC - 🏆 12. / 72 Read more »

U.S. stock futures show S&P 500 consolidating at 2023 highsThe S&P 500 on Monday was looking to consolidate at its best level since August having rallied in recent sessions on the removal of U.S. debt default fears.
Source: MarketWatch - 🏆 3. / 97 Read more »

Bearish Bets Against S&P 500 Are Surging, Despite Love for Big TechHedge funds and other speculative investors have built up a big bet that the S&P 500 will decline, marking their most bearish positioning since 2007.
Source: WSJ - 🏆 98. / 63 Read more »

Ukrainian president says at least 500 children killed by warUkrainian President Volodymyr Zelenskyy says Russia’s war has killed at least 500 Ukrainian children since it started more than 15 months ago.
Source: KPRC2 - 🏆 80. / 68 Read more »

Ukrainian president says at least 500 children killed by warUkrainian President Zelenskyy said it was impossible to establish the exact number of children who were casualties due to the ongoing hostilities and because some areas are under Russian occupation.
Source: cleveland19news - 🏆 70. / 68 Read more »

Ukrainian president says at least 500 children killed by warUkrainian President Volodymyr Zelenskyy said Sunday that Russia's war, now in its 16th month, has killed at least 500 Ukrainian children.
Source: WashTimes - 🏆 235. / 63 Read more »