Why Q1 beats are not 'good enough' to drive market gains

#yahoofinance #inflation #cpi #april

Stocks (^GSPC, ^IXIC, ^DJI) experienced a significant surge following the release of the April Consumer Price Index (CPI) data, which showed signs of cooling inflation, boosting hopes for potential rate cuts. To share insight into market outlooks amid the new data, Charles Schwab Senior Investment Strategist Kevin Gordon joins The Morning Brief. Gordon emphasizes that there are two crucial aspects investors should understand. While investors attribute market gains to the ongoing first quarter earnings season, Gordon considers the broader picture: "When you look at the data, and you look at the outperformance for companies relative to the S&P, or whatever benchmark, even when they're beating earnings, there hasn't been outperformance; you've actually seen an average decline." Secondly, Gordon advises investors not to "put so much focus on the Fed cutting being necessarily a bullish or a bearish thing for the market." He suggests that what's more important is the reason behind the Fed's decision to cut rates, as that will have a more significant impact on market dynamics. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith

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