RE: COULD BE A MASSIVE UPSIDE DAY TODAY14 Nov 2023 14:25
And finally..............
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Stock futures surged Tuesday as investors cheered the latest U.S. consumer price index report.
Futures tied to the Dow Jones Industrial Average
popped 377 points, or 1.1%. S&P 500 futures
jumped 1.4%, and Nasdaq-100 futures
were up by 1.7%.
CPI was flat last month, while economists polled by Dow Jones expected a gain of 0.1% month over month. The report comes as investors weigh the next potential policy move from the Federal Reserve.
So-called core CPI, which strips out food and energy prices, was also lower than expected and the slowest in two years. This instilled optimism into the market that the Federal Reserve was finally making headway in its fight against inflation.
Following the report, fed-funds futures showed traders had removed any chance of a hike in December, from 14% odds prior.
“This is the CPI report that is going to trigger serious talk about potential rate cuts in the first six months of next year,” said Sonu Varghese, global market strategist at Carson Group.
The 10-year Treasury yield, which shocked stock investors by leaping over 5% in October, tumbled below 4.5% following the soft inflation report.