"US Economy's Strength Propels S&P 500 to Record Highs"

The scorching US economy has raised doubts about whether strong growth can continue driving stocks higher if the Federal Reserve delivers less monetary-policy easing than expected. Expectations of a Fed pivot to cutting rates have been challenged by evidence of the economy running too hot for rate cuts without risking inflation. The blockbuster US employment number and stronger-than-expected growth have dimmed market expectations of a near-term rate cut, leading to concerns about a potential inflationary rebound and increased stress in areas like commercial real estate. Sustained above-trend growth could also drive Treasury yields up, pressuring equities and raising the cost of capital in the economy.