Art Cashin, UBS’s chief operating officer, is wary of the stock’s massive two-day rally this week. “The rally was so impressive, unfortunately I’m not happy with the spark that started it, an event-risk routine,” he said on CNBC’s “Squawk on the Street” on Wednesday. Cashin sees the rally started by the Bank of England’s move to cancel the sale of UK government bonds (British government bonds) and start temporarily buying long-term bonds to calm a crisis. potential market caused by the new government’s budget. The government then had to reverse its plan to reduce its top income tax rate. Furthermore, the United Nations Conference on Trade and Development recently warned central banks that further rate hikes could harm the global economy. “Part of the move that we’ve seen, and it’s really been a great two-day rally, is that people think the Fed and other central banks might take a pause,” Cashin said. What happens next Next, Cashin said he’ll be watching the earnings season, which is about to begin. Until then, he will keep an eye on bearish indicators for estimates. He was also struck by several other things in the market, such as the yields on inflation-protected Treasury securities, which seem to suggest inflation is falling and may even be close to the 2% target. of the Federal Reserve. “One swallow doesn’t make summer, but watch out for TIPS yields here,” he said. If inflation continues to fall, it could prompt policymakers to stop raising rates and think about their next move, Cashin added. “We don’t want to see them actually come back,” he said. “We just want to see them stop and reflect.”