A fresh look at the pace of inflation will test the U.S. stock market in the coming week, as investors worry that President Donald Trump’s tariff plans are endangering Wall Street’s hopes for interest rate cuts this year.

The benchmark S&P 500 remained about 1% below record-high levels, even as stocks were whipsawed this week by headlines over Trump’s plans to impose tariffs on the largest U.S. trading partners.

The monthly consumer price index due on Wednesday offers the latest read on inflation trends, a key investor concern. A survey of over 4,000 traders published this week showed inflation and tariffs are the factors expected to have the biggest sway on markets this year.

The pace of inflation has moderated from 40-year highs reached in 2022, allowing the Fed to cut rates last year, but it has not yet subsided to the central bank’s 2% annual target.

Source: FINANCE.YAHOO