Stocks (^GSPC, ^IXIC, ^DJI) are rising on better-than-expected consumer sentiment and pending home sales data. Laura Cooper, BlackRock's Senior Macro Investment Strategist for iShares EMEA, joins him on Yahoo Finance Live to discuss what this means for the market.
Cooper called the data “good news” and said it shows the economy remains strong. He said the Fed's commentary points to the fact that officials “hope to withstand higher inflation,” but that doesn't dissuade the possibility of an easing cycle, although strong indicators emphasized that this could prompt a delay in the mitigation cycle. .
Cooper suggested that if a rate cut doesn't materialize in June, there could be a “snap reaction” in the market that could slow stock market momentum. Cooper also stressed that the market is driven by “relatively strong fundamentals”, which remains a good sign for the stock market.
Regarding inflation, Cooper said the data so far shows it is running faster than expected. However, given the PCE print set to be released on Friday (which is expected to be colder than expected), the Fed will need a large number of signs of slowing inflation to feel “comforted enough” to cut rates. She says print is needed.
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Editor's note: This article was written by angel smith