Stock markets fall after inflation data release – Wall Street reacts | Financial experts analyze the effects.

Stock markets fall after inflation data release – Wall Street reacts | Financial experts analyze the effects.

According to a report by finanzmarktwelt.de,

Wall Street had a volatile day of trading, with stocks falling in the afternoon while US yields rose after US inflation data was released. The consumer price index rose 3.4% in December, stronger than expected, and inflation excluding food and energy rose 0.3% from the previous month. Reactions from financial experts to the data were mixed, with some encouraging the Fed to cut interest rates and others suggesting the Fed will likely remain patient and act later.

Chris Larkin at Morgan Stanley's E*Trade emphasized that despite the higher-than-expected inflation data, the Fed will likely remain patient before moving to adjust interest rates. Evercore's Krishna Guha said the Fed is unlikely to be worried yet despite the inflation report. Other experts such as Quincy Krosby, Seema Shah and Chris Zaccarelli also emphasized that the Fed is unlikely to act rashly but will respond patiently to economic conditions.

The reactions of financial experts show that the inflation data creates some uncertainty in the market, but the majority of experts do not expect any hasty actions from the Fed. The Fed's patience could calm the market and dampen expectations of a possible rate-cutting cycle in the near future.