September 3, 2026 - The S&P 500 Is Rallying Into an Inflation Trap

Market Pulse by Orestes Capital · Sep 4, 2026 · 15m

Stocks keep climbing—but the inflation data is refusing to cooperate.

In this episode of Market Pulse, we examine why the S&P 500 rallied despite another warning from services inflation, the part of the economy that matters most for the Federal Reserve’s final push toward price stability.

Is the market correctly pricing a resilient economy and eventual rate cuts—or looking past the risk that sticky inflation keeps interest rates higher for longer?

We break down the growing disconnect between equity optimism and the macro data, what the move means for Treasury yields and stock valuations, and…