Stocks Rise as Inflation Trends Lower, Bond Yields Slide – By Thomson/Reuters (Newsmax) / May 10, 2023
A gauge of global stock markets rose and bond yields slid Wednesday after data showed U.S. consumer prices in April rose at a slightly slower-than-expected pace, suggesting the Federal Reserve is succeeding in taming high inflation.
The Consumer Price Index rose 0.4% after rising 0.1% in March, the Labor Department said. But in the 12 months through April, the CPI increased 4.9%, less than the 5.0% year-on-year gain in March that a Reuters poll said analysts also expected.
Futures showed the probability that the Fed will raise rates again in June slid to 6.1% from 21.9% just before the data’s release, according to CME Group’s FedWatch Tool. The odds of the Fed cutting rates later this year also increased.
But the economy remains strong and slowing inflation to the Fed’s 2% target will take time, said Johan Grahn, head ETF market strategist at Allianz Investment Management in Minneapolis.
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