Hot inflation data coming but “Fed will keep its nerve”

Markets were mixed on Wednesday.

The S&P 500 fell 0.2 percent but the STOXX Europe 600 rose 0.1 percent and the Shanghai Composite rose 0.3 percent.

“U.S. stocks have largely been stuck in a range since mid-April and don’t seem likely to be breaking out anytime soon,” Edward Moya, senior market analyst at Oanda, said in a note.

Hot inflation data in the coming months could keep stocks weighed down, although the Federal Reserve and economists generally think the spike in inflation is likely to be transitory.

“I think inflation is the thing people want to be afraid of … I think it’s a misplaced fear,” said Ron Temple, head of US equities and co-head of multi-asset investing at Lazard Asset Management. “I think the Fed will keep its nerve.”