Risk sentiment rebounds, SPX rises again 🤗
Risk markets certainly welcomed the weaker CPI, with bond yields down 15 basis points on the day and the SPX rising another 0.75%, led by technology and rate-sensitive stocks, showing a rebound in risk sentiment across the board. Wall Street brokerage reports pointed out that after the release of this data, investors had a strong interest in establishing long fixed income positions (low interest rates are better), because as predicted by other indicators (such as the rapid deceleration of M2 money growth and the Case-Shiller house price index changes), the market expects that CPI will continue to decline.
