Why This Market Keeps Changing Its Mind

Liz Ann Sonders and Collin Martin of Charles Schwab review a volatile week for stocks and bonds, with persistent inflation and expectations for additional Federal Reserve rate hikes shaping the backdrop. Collin explains why the latest CPI report reinforces the view that the Fed may raise rates again in December, citing sticky core inflation. Liz Ann describes unusually sharp rotations in equity leadership among technology, health care and consumer staples, and argues that headline indexes may not capture what is happening beneath the surface.

1. The latest CPI report is presented as reinforcing expectations for another Fed rate hike in December.
2. Core inflation is described as sticky.
3. Relationships among Treasury yields, oil prices and stock performance are described as changing and complicating the picture.
4. Rather than one dominant trend, the hosts point to sharp rotations between technology, health care, consumer staples and other areas, with attention to market breadth and diversification.