Shares of Home Depot (NYSE: HD) were moving higher today after the core Consumer Price Index (CPI) was lower than expected for December. The news lifted stocks broadly, as falling inflation is good for the economy on a number of fronts,
The benchmark S&P 500 ( ^GSPC) popped more than 1.8%, while the Dow Jones Industrial Average ( ^DJI) rose more than 1.6%, or over 700 points. Meanwhile, the tech-heavy Nasdaq Composite ( ^IXIC) soared 2.5%.
Wall Street's main indexes fell on Tuesday as investors turned their attention to upcoming inflation data and quarterly earnings reports, which are expected to provide insights into the health of the U.
US stocks jumped on Wednesday after consumer price data showed inflation continues to slow. Strong bank earnings also helped lift sentiment.
Investors looked ahead to the release of December’s CPI data and the start of the fourth-quarter earnings season.
The consumer-price index came in relatively hot, rising 2.9% over the year, the Labor Department. But the so-called core CPI, which excludes volatile food and energy prices, rose 0.2% from a month earlier, its smallest gain since July and less than the 0.3% increase expected by economists.
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Better-than-expected Core CPI for December led to a sharp fall in US Treasury yields as stocks gained premarket, boosted by phenomenal banking results.
There are growing concerns about the stickiness of inflation and fears that the Federal Reserve may have to keep interest rates restrictively high for longer.
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Gas prices rose sharply, but investors homed in on a small decline in the core CPI.
The 10-year Treasury yield was slightly lower Wednesday morning ahead of the release of key consumer inflation data. The 10-year yield was around 2 basis points lower at 4.771%, further pulling back from the 14-month high reached on Monday. The yield on the 2-year Treasury was 1 basis point lower at 4.354%.