Investors next week will be closely watching for the latest reading on U.S. inflation, which has been running hot against the backdrop of a volatile stock market in 2022.
“Inflation will be the data point that moves markets next week,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Co., in a phone interview. “I think what you’re going to continue to see is a rotation towards those cheaper segments of the market.”
Investors have been jittery over their expectations for the Federal Reserve to take hawkish monetary policy steps toward combating inflation by raising interest rates from near zero. Rate-sensitive, high-growth stocks have been particularly hard hit so far this year, and some investors worry the Fed will hurt the economy if it hikes rates too much too fast.
“The Fed’s goal is not a recession,” said Schutte,…
