Published on 20 Feb 2024 on Zacks via Yahoo Finance

3 Large-Cap Growth Funds to Buy as Rate Cut Hopes Return

The Wall Street rally faced a hiccup early last week after fresh economic data showed that inflation increased more than expected in January, denting investors’ confidence. Stocks across sectors took a hit as an unexpected jump in inflation dimmed hopes of a rate cut by the Federal Reserve in the coming months.

The consumer price index (CPI) rose 0.3% month over month in January, higher than economists’ expectation of 0.2%. On a year-over-year basis, in January, CPI jumped 3.1% after increasing 3.4% in December.  It was also higher than the consensus estimate of 2.9%.

However, the rally resumed within a couple of days after another set of economic data showed that retail sales slumped sharply in January, while industrial production also unexpectedly declined 0.1% in January.