Could the Latest Inflation Data Trigger a Stock Market Crash?
Rising inflation driven by geopolitical conflicts and oil price increases is prompting expectations of additional Federal Reserve rate hikes through 2027. With the S&P 500 trading at historically elevated valuations (CAPE ratio of 40), the market appears vulnerable to a significant correction similar to the 20%+ decline experienced during the Fed's last rate-hiking cycle from 2022-2023.