Wall Street Goes Risk-On After Inflation Surprise: Markets Wrap
- US CPI runs cooler than forecast, easing pressure on officials
- Fed leaders, unswayed by softer CPI, see rate hikes into 2023
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Stocks surged as softer-than-expected inflation data fueled bets the Federal Reserve could pivot to a smaller pace of hikes -- a view taken with a grain of salt by market watchers saying officials may still be a long ways from achieving their goal.
Traders went risk-on Wednesday, with the S&P 500 hitting a three-month high. A rally in tech shares sent the Nasdaq 100 more than 20% above its June bottom, leaving it in a bull market going by a commonly held definition. The gauge still sits 19% below its November record. The Cboe Volatility Index slid to a level last seen in April.