Stocks Hold Steady Ahead of US CPI Data and Iran Ceasefire Deadline
US stocks held steady on Friday as investors paused after strong gains earlier in the week and awaited key inflation data, while continuing to monitor geopolitical developments in the Middle East.
The ceasefire between the US and Iran announced earlier this week helped drive a sharp improvement in risk sentiment, putting the S&P 500 and Nasdaq on track for their strongest weekly performances since November. However, momentum is now stalling somewhat as markets reassess the durability of the two-week truce.
US CPI data for March is expected to show inflation rising to 3.3% year-on-year, which could challenge the recent improvement in sentiment by reinforcing the view that inflation remains sticky. Notably, markets are no longer pricing in any rate cuts from the Federal Reserve in 2026, a significant shift from earlier expectations prior to the escalation in geopolitical tensions.