Inflation report, bond yields in focus as U.S. stocks rally pauses
A highly awaited inflation report and elevated bond yields offer the latest test to a U.S. stock rally that has delivered hefty gains this year. The benchmark S&P 500 index is up 16.6% year to date, fueled by an improving economic outlook, excitement over developments in artificial intelligence and signs that the Federal Reserve is close to ending its market-bruising U.S. interest rate hikes. Stocks' near-term trajectory, however, may depend on whether next week's inflation report shows consumer prices remaining subdued.