U.S. economic resilience boosts earnings season hopes, reduces chances of Fed rate cut

According to Golden Ten, the resilience of the U.S. economy has boosted hopes for the upcoming earnings season and also reduced the possibility that the Federal Reserve will turn to interest rate cuts in the near future. Data expected to be released on Wednesday will show that U.S. CPI accelerated to 3.4% in March, with core inflation at 3.7%. Lars Mold, investment director at AJ Bell, said the CPI data may reinforce the argument that a rate cut is not imminent. Inflation is creeping higher, contrary to the reasons the Fed wants to see interest rates cut. HSBC strategist Max Kettner said the improving economic growth outlook is good for stocks, while the recent stock market setback is temporary and provides a buying opportunity.