Institution: Stubborn US inflation reaffirmed, rising rate hike expectations may ultimately pressure stock markets

November 10 - Joe Saluzzi, partner and co-head of equity trading at Themis Trading, said, "The inflation data came in higher than expected, which has led some to re-examine the market outlook. In particular, a Federal Reserve governor previously hinted that if inflation data is elevated, the Fed might raise rates by 50 basis points at once before the end of the year. I think a 50 basis point rate hike now is too large, but for now, a 25 basis point hike remains a possible option. This data is indeed higher, proving the stubbornness of inflation.

Overall, as long as interest rates and inflation remain high, interest rates will continue to be under pressure at high levels, which will bring sustained pressure on companies that rely on borrowing for financing and may damage their profitability, ultimately reflected in stock prices. For some time, companies have been able to cope with this environment to some extent, but if this situation persists, I expect the stock market to face greater pressure."