Market Surges: CPI Eases More Than Expected🌍
A much softer than expected CPI stoked the fires to yesterday's rally, which saw the SPX rise by over 2% and bond yields lower by more than 20bp (!!) in the front-end, the largest daily move since the March banking crisis. Core CPI rose 0.23% MoM vs Street expectations of a 0.34% print, and 'whisper' expectations of even a 0.4% move. A sharper than expected slowdown in OER and shelter prices printed 0.4% MoM vs 0.6% expected, while the 'super-core' reading (core services ex shelter) dropped from to 0.37% MoM vs 0.57% prior. Furthermore, there were little caveats or doubts on the softness of the print, thereby helping to drive the risk move on-way higher all-session.
#MarketSurge #SPXGains #BondYieldsDrop #MonthOverMonthGrowth #RiskAssets