Inflation: ‘One data point does not make a trend,’ strategist says

U.S. have stocks rallied this week with both the S&P 500 and tech-heavy Nasdaq set to post their longest streak of weekly gains since November, bolstered by Wednesday’s inflation data.

But one strategist argues markets aren’t out of the woods just yet when it comes to inflation and any subsequent actions from the Federal Reserve.

“I would just simply say that one data point does not make a trend by any means,” PNC Asset Management Chief Investment Officer Amanda Agati told Yahoo Finance Live on Friday (video above). “And so the market really took the July CPI [Consumer Price Index] report as claiming victory that the peak is officially in.”

Data out Wednesday showed the consumer price index climbed 8.5% from a year earlier in July compared to the 9.1% annual increase seen in June. Economists had expected July’s data would show an 8.7% jump from the prior year.

On a month-over-month basis, prices were unchanged from June to July.

This report also sparked some speculation the Fed may ease…

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