Will Dow Jones Outperform Nasdaq 100 As Inflation Debates Heat Up?

Rising inflation expectations and robust economic data have seeded divergence among Fed officials. Some of them suggested it is time to debate tapering stimulus while a majority supported the view that upward price pressure might be transitory. The knee-jerk reaction last week following Treasury Secretary Janet Yellen’s interest rate comments reflected the fragility of risk assets amid tapering fears. Polarized views on the Fed’s future monetary policy guidance may lead to higher volatility in the stock market, especially the rate-sensitive technology sector.

Commodity Prices Vs. 5-Year Breakeven Inflation

Will Dow Jones Outperform Nasdaq 100 as Inflation Debates Heat Up?

Source: Bloomberg, DailyFX



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