From Morningstar: 2024-04-15 10:22:00

Investors were caught off guard by the latest inflation data, with core consumer prices rising to 3.5% over the past year, exceeding expectations. This led to concerns of more persistent inflation challenging the idea of lower rates. The Morningstar US Market index fell 1.63% in response to these worries.

Big US banks faced scrutiny as they reported quarterly results, with JPMorgan Chase seeing a 6.47% stock drop despite a strong first quarter. Analysts like Suryansh Sharma believe the bank remains overvalued. Other banks like Citigroup and Wells Fargo fared better, showing that high expectations can lead to disappointment.

Market experts are closely watching inflation trends, expecting higher rates for longer leading to economic slowdowns and tougher profit conditions. Understanding fair value investments is crucial during uncertain times. For long-term investors, focusing on equity growth opportunities may be a wiser strategy amidst price falls.



Read more at Morningstar: Markets Brief: Will the New Inflation Story Hurt…