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Dow rallies more than 350 points as tame inflation data fuels market comeback
- MilnerRoute 2y agoThe Associated Press puts it this way. "Americans' refusal to keep paying higher prices may be dealing a final blow to US inflation spike." Some of America’s largest companies, from Amazon to Disney to Yum Brands, say their customers are increasingly seeking cheaper alternative products and services, searching for bargains or just avoiding items they deem too expensive... "I think consumers have gotten to the point where they’re just not accepting it,” Tom Barkin, president of the Federal Reserve Bank of Richmond, said last week at a conference of business economists... The reluctance of consumers to keep paying more has forced companies to slow their price increases — or even to cut them. The result is a cooling of inflation pressures. https://apnews.com/article/inflation-prices-consumers-economy-spending-federal-reserve-c69408f05baeffac0023ceb76b747999 https://apnews.com/article/inflation-prices-consumers-econom...
- toomuchtodo 2y agoCooling inflation data supports Fed rate cut at September FOMC meeting; when interest rates go down, asset prices go up, causing the equities market to rally. Bond market is 50/50 split on either a 25 or 50 basis points rate cut as of this comment [1]. The equities market is clearly confident in the cut based on the asset allocation rotation. [1] https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html https://www.cmegroup.com/markets/interest-rates/cme-fedwatch...
- tomatotomato37 2y agoWhy do people put so much stock into daily movement like this? The Dow yearly graph is at the same level it was around the start of April or mid-May, with spikes and pits both above and below the big movements seen last and this week.
- halfcat 2y agoStandard financial news template: ”Markets (up|down|flat) as <something happened today>” And the thing about days: something always happens