August’s core CPI reading indicates persistent underlying price pressure, despite the annual rate easing to its lowest level in years. The upside monthly surprise materially strengthened expectations of a September rate hike, while the shift in Goldman’s forecast reinforces the more hawkish policy outlook. The rise in the 10-year Treasury yield toward 5% increases discount-rate pressure on equities, particularly high-valuation and long-duration growth stocks. Markets may remain sensitive to upcoming inflation and labor data, as confirmation of persistent inflation could sustain higher yields and limit expectations for monetary easing.