Stocks Have Best CPI Day in a Year
Inflation in the US, as measured by the change in the Consumer Price Index, declined to 3.2% on a yearly basis in October, the US Bureau of Labor Statistics reported on Tuesday.
• YoY: 3.2% vs 3.3% est; 3.7% prior
• YoY: 4.0% vs 4.1% est; 4.1% prior
Market reaction to US CPI data
The US Dollar came under heavy selling pressure with the immediate reaction. The benchmark 10-year US Treasury bond yield was down nearly 3% on the day at around 4.5%. The $S&P 500 Index(.SPX.US$ and $Nasdaq Composite Index(.IXIC.US$ posted their biggest daily percentage gains since April 27 on Tuesday
By 16:00 ET, the $Dow Jones Industrial Average(.DJI.US$ was up 489 points or 1.4%, while the S&P 500 was up 1.9% and the NASDAQ Composite was up 2.4%.
What does the Fed do now?![]()
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The odds the Federal Reserve holds interest rates steady through its next two meetings jumped after October’s consumer price index came in cooler than expected.
Odds of a Fed rate hike at the December meeting went from 14% to 0% after the CPI report.
Odds of a Fed rate hike at the December meeting went from 14% to 0% after the CPI report.
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Simon Lee8 : The bull market has begun
73791070 : it's definitely not over
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