Market rebounds, mild CPI data beats expectations 🌍
Much milder-than-expected CPI drove gains in markets yesterday, with the SPX up more than 2% and short-dated bond yields falling more than 20 basis points (!!) in the biggest single-day move since the banking crisis in March. Core CPI rose 0.23% month-on-month, lower than market expectations of 0.34%. Market forecasts of as high as 0.4% were even reported, in which the owner's equivalent rent and housing prices slowed more than expected, with a month-on-month increase of 0.4%, lower than expected. 0.6%, and the "super core" CPI (core services except housing) growth also fell from the previous value of 0.57% to 0.37%. In addition, the market had almost no expectations for the slowdown in CPI data, pushing risk assets throughout the The trading day has been trending higher.