Boom of purchases on Wall Street, after the publication of the data relating to US inflation measured by the consumer price index. The CPI index finally highlighted the slowdown in inflationary pressures after Jerome Powell’s round of aggressive rate hikes by the Fed.
The CPI index rose 0.4% on a monthly basis, less than the + 0.6% expected and as in September. Core inflation rose 0.3% on a monthly basis, less than the estimated + 0.5% and slowing compared to the previous + 0.6%.
On an annual basis, headline inflation growth weakened from the previous 8.2% rise to + 7.7%, at a slower pace than the + 8% expected by the consensus.
The growth of core inflation also decreased, passing from the maximum pace of the last 40 years of + 6.6% in September, to + 6.3% in October. At this point, traders have reason to hope for a year-end monetary tightening, in the December meeting of the FOMC – the monetary policy arm of the Fed – by 50 basis points, after the phase in which rates were raised by 75 points. base four consecutive times.
Futures on the Dow Jones jumped more than 800 points, those on the S&P 500 fly by 3% and those on the Nasdaq jump by almost + 4%. Treasury rates plummet, with ten-year rates hitting the 4% threshold, falling to 3.918% and two-year rates falling 23 basis points to 4.395%.