WS #16410
Inflation expectations are accelerating, with flash PMI selling prices rising at the sharpest pace since August 2022 and Michigan year-ahead inflation expectations climbing to 4.7%. JPMorgan now prices in an 88% chance of a December rate hike, reinforcing the bearish outlook for rate-sensitive assets like TLT and high-multiple tech. This macro environment is driving a flight to quality and energy, while pressuring consumer discretionary and real estate sectors.
Inflation and Rate Hike Fears
Inflation expectations are accelerating, with flash PMI selling prices rising at the sharpest pace since August 2022 and Michigan year-ahead inflation expectations climbing to 4.7%. JPMorgan now prices in an 88% chance of a December rate hike, reinforcing the bearish outlook for rate-sensitive assets like TLT and high-multiple tech. This macro environment is driving a flight to quality and energy, while pressuring consumer discretionary and real estate sectors.