Invesco's Kristina Hooper is concerned Wall Street is ignoring a major risk: Wage growth. But it may reclaim the spotlight as soon as Friday when the government releases its November jobs report.
Hooper believes if the number ticks up too high, it could hint at price pressures that may shift the Federal Reserve's thinking on rates, and ultimately disrupt the bull market even more.
"Many have said we don't have to worry about inflation right now because look at where oil prices are. That's taking pressure off markets. But as we know, the Fed doesn't care about headline inflation. It cares about core inflation," the firm's chief global market strategist said Thursday on CNBC's "Futures Now."
The Labor Department reported in October wages and salaries grew 3.1 percent in the third quarter — the biggest increase in a decade. Hooper predicted trouble if wage growth mounts, because Wall Street uses it to determine whether inflation is picking up momentum.
"It means that the Fed has less flexibility to take its foot off the accelerator" on rate hikes, said Hooper.