With inflation seeming to cool in some areas of the economy, the tailwind may have helped some businesses as many earnings reports from S&P 500 companies (^GSPC) has been positive.

Northern Trust CIO Katie Nixon joins Catalysts to discuss the recent market rallies focused on tech and how the market can continue to develop.

Nixon speaks on the ways cooling inflation has helped companies with their margins, affecting growth: "I do think pricing power has propelled, a lot of revenue growth, certainly for many companies in the S&P 500. And we actually see margins remaining pretty stable at around 12%, even after sort of this pricing power has waned a bit. So margins are expected to be strong."

She continues with: "We know that companies are being very, very careful about how they spend their money in order to really preserve margins in the absence of that really broad-based pricing power. But I will say, as inflation comes down, that will allow the Fed [Federal Reserve] to start easing policy. And I think that would be a nice tailwind for, again, the other 493 in the S&P 500."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino