Oddbean

Stocks Rally in Countdown to CPI as US Yields Sink: Markets Wrap ========== Stocks rallied and bond yields fell after the latest US inflation reading reinforced speculation the Federal Reserve will be able to deploy its widely anticipated interest-rate cut in September. The S&P 500 climbed 1.7%, led by gains in the world’s largest technology companies. Treasuries rose across the curve, with the move driven by shorter maturities. The dollar fell. The easing of price pressures has bolstered confidence US officials can start lowering borrowing costs while refocusing on the labor market, which is showing greater signs of slowing. Fed Bank of Atlanta President Raphael Bostic said he’s looking for “a little more data” before supporting a reduction in rates, while reiterating he’ll likely be ready to cut “by the end of the year.” A survey conducted by 22V Research showed 52% of investors expect the reaction to Wednesday’s consumer price index to be “risk-on.” The S&P 500 saw its biggest four-day rally this year. The Nasdaq 100 climbed 2.5%. The Russell 2000 rose 1.6%. Starbucks Corp. surged 25% after ousting its chief and picking Chipotle Mexican Grill Inc.’s Brian Niccol as its next leader. In late hours, Bloomberg News reported that a bid to break up Alphabet Inc.’s Google is one of the options being considered by the Justice Department. #Stocks #Rally #Cpi #UsYields #FederalReserve #Inflation #InterestrateCut #TechnologyCompanies #Treasuries #LaborMarket #ConsumerPriceIndex #Survey #S&p500 #Nasdaq100 #Russell2000 #Starbucks #ChipotleMexicanGrill #AlphabetInc #Google #JusticeDepartment https://emeatribune.com/stocks-rally-in-countdown-to-cpi-as-us-yields-sink-markets-wrap/