US inflation prints dent rate cut hopes; what will move the market now? Here's what 5 experts say

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Frothy U.S. Stock Market Just Isn’t Crazy Enough to Be a Bubble Conversely, the Indian stock market suffered strong losses the following day, with Sensex and Nifty 50 falling over a per cent each and the overall market capitalisation of BSE-listed firms plunging by as much as about ₹13.5 lakh crore in a single session. Also Read: Sensex, Nifty 50 fall over 1% each; why did the Indian stock market fall today? The domestic market appeared concerned that a delay in rate cuts could deter foreign capital inflows into it.

The anticipation of rate cuts has remained a significant market catalyst for nearly a year. While the domestic market will undoubtedly respond to global cues, macroeconomic indicators, earnings reports, and political developments, it's undeniable that rate cuts will continue to be a primary driver for the market moving forward. Most experts believe there is still a high possibility that the US Fed will start reducing rates from June even as inflation remains above the Fed's 2 per cent target and the US economy remains strong.

However, the number of cuts could be lesser and also the extent of rate reduction may not be deep. While a shallow rate cut may disappoint the market, experts believe the market will eventually focus more on fundamentals and less on the Fed. Here are the perspectives of five leading experts on the anticipated Fed rate cuts and the triggers that will move the market going forward.