Wall St Week Ahead: Inflation data, presidential debate could sink summer rally


This summer brings extra headwinds with ongoing uncertainty over the timing of rate cuts and the unknowns of the US presidential election expected to drive some choppiness.

NEW YORK: The typical summer slowdown in US stock markets may be more pronounced this year with inflation jitters and an early presidential debate that have the potential to weigh on a rally that has pushed the S&P 500 near record highs in recent months.

The S&P 500 is up nearly 12% this year on strong earnings and signs inflation may be falling enough for the Federal Reserve to cut benchmark interest rates, but that rally is unlikely to continue in the months ahead, investors said.

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