1. The American Economic Environment

• Recent inflation data (CPI) came in higher than expected, indicating that inflation may be more 'sticky' than investors would like.

• The labor market also shows some pressures, with rising unemployment claims and revisions to employment data suggesting that the number of previously reported jobs may be overstated.

• These data points put pressure on expectations for interest rate cuts from the Federal Reserve, and could delay them if indicators continue to show upside surprises.