BlackRock's report is quite interesting.

On the surface, it discusses CPI and the US-Iran situation, but in reality, it's giving the market a warning. The 4.2% CPI expectation far exceeds the Federal Reserve's 2% target, which means if Wednesday's data confirms this,
the expectation of rate hikes will instantly heat up.
But there's a detail worth noting here. BlackRock specifically mentions the Strait of Hormuz and oil inventories together, which is no coincidence. US oil inventories are near a 40-year low, and if the Middle East situation worsens, a surge in energy-driven inflation is almost inevitable.
It can be roughly determined that BlackRock's real concern is not the CPI itself, but the structural issues of inflation. Food, energy, and service prices are rising simultaneously, and the Fed's previous rate hikes haven't addressed the fundamental problems.
For the market, this is indeed a stress test. In an environment of high borrowing costs, risk assets are the first to bear the brunt. If CPI exceeds expectations, the increased probability of rate hikes could cause the market to short-term retrace to lower levels.
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