The stock market continues to rally, reaching record levels. Investors focus on upcoming inflation data that may impact the Fed's decisions.
Stock Market Hits Record Levels
The stock market is again near record highs. Apple's $100 billion U.S. investment has boosted tech stocks, with the S&P 500 jumping 2.5% last week. The Nasdaq reached new highs, climbing nearly 4%, and the Dow added over 1%. All eyes are now on inflation data, which could either support or undermine the current trend.
Concerns Over Inflation and Tariffs
Stock futures ticked higher on Sunday, with Dow, S&P 500, and Nasdaq contracts all up about 0.1%. This week’s inflation data presents a key hurdle for an already stretched market amid high valuations and tariff risks. Economists expect headline inflation to rise to 2.8% in July from 2.7% in June, while the core inflation may hit 3%. Tariffs are adding pressure, and UBS projects inflation could climb to 3.5% by year-end.
Crypto Moves Alongside Stock Market
Crypto markets are rising on the bullish sentiment from equities. Bitcoin surged to $121,733, its highest in nearly a month, while Ether hit $4,335 — a level not seen since late 2021. Van Ha Trinh, a financial markets strategist, stated, "We are seeing some very dynamic market conditions. The optimism in the crypto sector coincides with an equity market rally."
The stock market exhibits confidence amid multiple risks related to inflation and trade tariffs. The future of the rally hinges on the Fed's reactions and inflation data.
