Stock Traders Bracing for Worst Shrug Off Hot CPI: Markets Wrap

  • S&P 500 closes at another all-time high amid technology rally
  • Traders still betting Fed will be able to cut rates this year
CPI Report Won't Alarm the Fed, JPMorgan's Kelly SaysSource: Bloomberg
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Stocks climbed to a fresh record as the latest inflation figures did little to alter bets the Federal Reserve will cut rates this year — even if officials keep a more cautious stance for now.

An equity decline that lasted just a few minutes gave way to a rebound that pushed the S&P 500 up more than 1%. Notwithstanding the fact that the consumer price index continued to show signs of “stickiness,” the overall report came only slightly above economist estimates. While that’s not ideal for a central bank trying to get close to its 2% target, the CPI was not a shocker to Wall Street traders dreading another post-inflation rout.