July Consumer Inflation Rises, But Less Than Economists Fear: 'The Fever Has Broken'
Portfolio Pulse from AJ Fabino
The Consumer Price Index rose from 3% in June to 3.2% in July, narrowly missing the anticipated 3.3%. Core inflation was down marginally from 4.8% in June to 4.7% in July. The SPDR S&P 500 (NYSE:SPY) rose more than 1% after the data was released. Economists and strategists suggest that the slower-than-expected rise in consumer prices is a positive development and supports calls for a pause in rate hikes.
August 10, 2023 | 3:46 pm
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The SPDR S&P 500 (NYSE:SPY) rose more than 1% after the release of the July CPI data. The slower-than-expected rise in consumer prices is seen as a positive development and supports calls for a pause in rate hikes, which could be beneficial for the stock market.
The SPDR S&P 500 (NYSE:SPY) rose after the release of the July CPI data, indicating that the market reacted positively to the news. The slower-than-expected rise in consumer prices is seen as a positive development, as it reduces the pressure on the Federal Reserve to raise interest rates. A pause in rate hikes is generally beneficial for the stock market, as it keeps borrowing costs low for companies and encourages investment. Therefore, this news could have a positive short-term impact on SPY.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80