WS #16640
Inflation expectations are re-accelerating, with markets now assigning a 75% probability to a Federal Reserve rate hike in December. This shift is driven by the resurgence of oil prices due to Middle East conflicts and persistent core inflation metrics. The prospect of higher-for-longer rates is a primary headwind for the tech sector and high-multiple growth stocks, reinforcing the current market rotation into defensive assets and energy.
Inflation & Fed Policy
Inflation expectations are re-accelerating, with markets now assigning a 75% probability to a Federal Reserve rate hike in December. This shift is driven by the resurgence of oil prices due to Middle East conflicts and persistent core inflation metrics. The prospect of higher-for-longer rates is a primary headwind for the tech sector and high-multiple growth stocks, reinforcing the current market rotation into defensive assets and energy.