Oh look. Thanks Joe! Yeah, the Fed too. However if Trump were president no Trumpanzee would mention the Fed's rate hikes' role in bringing inflation down.
UPDATED TUE, NOV 14 202310:00 AM EST
Stocks rally Tuesday on soft inflation data, Dow jumps 400 points: Live updates
Stocks surged Tuesday as investors cheered the latest U.S. consumer price index report.
The Dow Jones Industrial Average
jumped 430 points, or 1.3%. The S&P 500
rallied 1.6%, while the Nasdaq Composite
traded 2% higher.
Shares of Home Depot, which were up nearly 5% on better-than-expected third-quarter earnings, led the gains for the Dow. Enphase Energies, Boston Properties and SolarEdge Technologies
— each up more than 9% — led the S&P higher.
CPI was flat last month, while economists polled by Dow Jones expected a gain of 0.1% month over month. So-called core CPI, which strips out food and energy prices, was also lower than expected and the slowest in two years.
This instilled optimism into the market that the Federal Reserve was finally making headway in its fight against inflation.
Following the report, fed-funds futures showed traders had removed any chance of a hike in December, from 14% odds prior.
“This is the CPI report that is going to trigger serious talk about potential rate cuts in the first six months of next year,” said Sonu Varghese, global market strategist at Carson Group.
The 10-year Treasury yield, which shocked stock investors by leaping over 5% in October, tumbled below 4.5% following the soft inflation report.