Stock Bulls Cheer Wall Street’s Disinflation Trade: Markets Wrap
- S&P 500 tops 4,500 as tech powers advance after soft PPI data
- Fed’s Bullard, who called for aggressive hikes, has resigned
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Wall Street got an extra dose of encouragement to bid up stocks after another inflation report reinforced bets the Federal Reserve is approaching an interest-rate peak.
All of a sudden, disinflation becomes the buzzword across trading desks, with investors looking on the bright side of data showing a slowdown in prices — even though core inflation is still running above the central bank’s 2% target. Equities gained further traction on news that Fed Bank of St. Louis President James Bullard — who called for aggressive hikes — has resigned.