Earnings calls are key for sentiment checks, providing insights into how the corporate world is feeling and how it could impact the economy, future corporate earnings and the markets.

According to Factset, companies citing inflation on earnings calls and other presentations peaked last quarter, with "inflation" being cited by lowest number of companies since Q4 2021.

Does this mean the worst of inflation surprises are behind the market?

Overall market sentiment worsened this week as rate increase expectations shot up after the payroll data for February.

If the Factset chart is a leading indicator, then earnings and margins could be next to bottom.

Stronger or stable earnings, with a strong enough consumer, low unemployment and healthy wages could mean that inflation might not come back down as soon as the market would have hoped, meaning higher rates for longer and no rate cuts in sight any time soon.