Market Rallies On Improved Inflation
Posted on 11/14/2023
Consumer prices were flat and core CPI rose 0.2% and 4% on the year. The markets rallied with the Nasdaq up 2.25% and the S&P up 2.03% in late morning trading. The regular Consumer Price Index includes food and energy, while the “core CPI” excludes these items. Due to various factors, food and energy prices vary, leading some to look more closely at core CPI.
The improvement in inflation would appear to indicate that Jerome Powell’s interest rate hikes are having their intended effect.
