7.7% sent the market skyrocketing
A look under the hood of the October CPI Data and is it enough?
CPI data came out today for the month of October and the market is certainly celebrating the fact that YoY CPI came down to 7.7% from 8.2%, in September. The number also well below the consensus range which was 7.8% on the low end.
The Nasdaq 100 is up over 6.5% and the S&P 500 is up close to 5%. The Dollar index retreated 2% and the 30-year bond is up 3.7%
This is certainly an extreme reaction but, let’s look at the CPI in detail to see if this celebration is warranted or just a bit premature.