Analyst: Tariffs may have less impact on inflation than expected, but market still needs to be cautious.

Dan Carter, portfolio manager at Fort Washington Investment Advisors, said: "It looks like commodity inflation may be lower than expected. We may not see the impact of tariffs as initially feared. However, we are still in the early stages, so we need to be cautious and not jump to conclusions based on this reading. In addition, service sector inflation has increased slightly. The market's interpretation is that this will not prevent the Federal Reserve from moving towards rate cuts."