U.S. Stocks Rally to Record Highs on Cooling Inflation Data
U.S. equities surged to all-time highs as a softer-than-expected inflation report bolstered expectations for Federal Reserve rate cuts. The Dow Jones Industrial Average breached 47,000 for the first time, gaining 1%, while the S&P 500 and Nasdaq Composite ROSE 0.8% and 1.2% respectively.
September's Consumer Price Index rose 3% annually, slightly below forecasts. Core inflation, excluding volatile food and energy prices, matched the headline figure at 3%. Markets now price near-certain odds of 25-basis-point Fed rate cuts at both remaining 2023 meetings.
Financial stocks led the charge, with JPMorgan Chase and Wells Fargo advancing over 2%. The prospect of accommodative monetary policy reignited risk appetite across asset classes, though the report contained no direct cryptocurrency mentions.
