WS #16526
The Federal Reserve's preferred inflation measure rose in September, complicating the outlook for future rate cuts. This data, combined with weak copper demand signals and rising European gas prices, suggests that inflationary pressures remain sticky. The macro environment is thus becoming less supportive of high-multiple growth stocks, reinforcing the bearish sentiment in the tech sector and favoring value and defensive assets.
Macroeconomic and Inflation Data
The Federal Reserve's preferred inflation measure rose in September, complicating the outlook for future rate cuts. This data, combined with weak copper demand signals and rising European gas prices, suggests that inflationary pressures remain sticky. The macro environment is thus becoming less supportive of high-multiple growth stocks, reinforcing the bearish sentiment in the tech sector and favoring value and defensive assets.