Wall Street feasts on inflation report
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Stocks rose and bond yields fell today, as October's unexpectedly cool inflation report had Wall Street seeing the end of the Fed's rate-hike campaign, Nathan writes.
Driving the news: Prices were up 3.2% in October compared with a year earlier, slowing from September's jump of 3.7%, according to the Consumer Price Index released today.
- Prices were flat from September to October.
Market impact: Two-year treasury yields dropped 20 basis points today. The S&P 500 twice broke the 4,500-point mark, before closing up 1.9%. The Dow closed up 489 points and the Nasdaq finished up 2.4%.
- The bump continues a solid run for markets in November: The S&P 500 is up about 7% on the month.
The other side: "Despite the deceleration, the Fed will likely continue to speak hawkishly and will keep warning investors not to be complacent about the Fed's resolve to get inflation down to the long-run 2% target," wrote Jeffrey Roach, chief economist for LPL Financial.
