Stocks Hit Highs as CPI Gives Fed All-Clear to Cut: Markets Wrap

Wall Street saw a relief rally as cooler-than-estimated inflation data reinforced trader conviction on Federal Reserve interest-rate cuts.

Stocks extended their October advance, with the S&P 500 hitting fresh all-time highs amid speculation that policy easing will keep powering corporate earnings. An initial jump in Treasuries waned after manufacturing and service surveys underscored resilience in the world’s largest economy.

Stocks hit all-time highs.

Source: Bloomberg

The slowest pace in three months for underlying inflation was welcomed by traders, who’ve been flying almost blind amid the dearth of data since the start of the government shutdown. The September core consumer price index increased 0.2% from August. ...