Institutions: The stubbornness of U.S. inflation has been further confirmed, and rising interest rate hike expectations may eventually weigh on the stock market.

Joe Saluzzi, partner and co-head of equity trading at Themis Trading, stated: "Inflation data coming in above expectations has prompted some to reassess market outlooks. Notably, Federal Reserve officials previously signaled that if inflation remains elevated, the U.S. central bank could deliver a 50-basis-point rate hike in a single move before the end of the year. I believe a 50-basis-point hike now is too large a move, but a 25-basis-point increase remains a viable option for now. This latest reading is indeed higher, confirming inflation’s persistence. Overall, as long as interest rates and inflation stay elevated, rates will remain under upward pressure. This will exert sustained stress on companies reliant on borrowing for financing, potentially eroding their profitability and ultimately weighing on stock prices. For some time, businesses have been able to weather this environment to a certain degree, but if the situation persists, I expect the stock market to face greater headwinds."