The PCE report on Thursday morning was a big red flag to investors that the inflation fight is far from over. This further pushes back the assumed starting date for the Fed to finally cut rates. This also quickly reversed the benefits of the recent stock bounce as the S&P 500 (SPY) had a fairly rough session on Thursday.
This all points to a long grueling summer for stocks as benefits of rate cuts will not soon be in hand. Thus, with not much reason to go higher investors will contemplate how low they should go instead?
