FinStockGenius

S&P 500 All-Time Highs as US Economy Cools The S&P 500 reaching all-time highs while the US economy shows signs of cooling has left many investors questioning what comes next. On one hand, slowing growth suggests caution; on the other, strong corporate earnings and expectations of Federal Reserve rate cuts are fuelling optimism. Let’s break down what’s happening, why it matters, and how you can position yourself in this unique market environment. Why Is the S&P 500 Hitting New Highs? Despite concerns about slower economic growth, several key factors are driving the index upward: Earnings resilience: Many large-cap companies, especially in tech and healthcare, continue to report strong earnings. Fed rate cut expectations: Investors are betting that cooling inflation and weaker data will push the Fed to cut rates sooner, boosting equity valuations. Global capital inflows: As US markets remain more stable than many international economies, foreign investors are channeling m...

Which Asset Classes Historically React Most to CPI Surprises? Introduction When CPI surprises hit the market, investors immediately look at how different asset classes react. The Consumer Price Index (CPI) is one of the most closely watched indicators of inflation in the United States. A stronger-than-expected CPI reading can rattle stocks, strengthen the dollar, and push bond yields higher—while a weaker print often sparks rallies in risk assets. Understanding which asset classes historically react most to CPI surprises is essential for traders, long-term investors, and anyone tracking inflation trends. In this article, we’ll explore how equities, bonds, currencies, and commodities typically behave when CPI numbers come in above or below expectations. We’ll also look at a recent US case study, highlight practical takeaways, and answer common investor questions. Why CPI Surprises Matter to Markets CPI measures the change in consumer prices over time. When the releas...