Stock market’s wild gyrations put earnings in focus as inflation crushes Fed ‘pivot’ hopes

Inflation expectations worsen as U.S. consumer mood increases in October

Reuters, NEW YORK, October 14 - U.S. stocks fell on Friday as investors digested the first-quarter earnings season and concerns about the Federal Reserve's aggressive rate hike path persisted due to weakening inflation projections.

Equities began higher in the final session of a turbulent week, but later lost ground after data from the University of Michigan indicated

that consumer mood rose in October despite worsening inflation predictions due to rising gasoline costs. Data on retail sales also showed customer resiliency.

The Fed wants to ensure that inflation expectations remain firmly planted around 2% to 2.5%, according to Brian Jacobsen, senior investment strategist at Allspring Global Investments in Menomonee Falls, Wisconsin. 

You get that University of Michigan data to say that maybe we are going to see those inflation expectations rising.


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