Markets were mostly higher this week as investors focused on strong earnings that are keeping the AI trade rolling along. Investors also remain confident that an end to the blockade in the Strait of Hormuz is coming sooner rather than later.
That would take the pressure off inflation, which came in hotter than expected on both the consumer and producer levels. Sticky inflation is changing the outlook for rate cuts and is even putting the idea of a rate hike on the table. For now, however, investors are buying into the growth story, which is backed up by mostly solid earnings.
