Wall Street Just Declared Victory Over Inflation
For the past couple of years, investors have had to deal with a macroeconomic factor they'd previously been able to ignore for decades: inflation.
A host of global issues combined to propel it skyward, and people could clearly feel the impact when they went to grocery stores, car dealers, and practically everywhere else. The broader economic outlook was thrown for a loop, and officials at the Federal Reserve responded with their most aggressive monetary tightening campaign in over a generation. Growth stocks tumbled -- a decline that played a key role in 2022's bear market.
However, the news out of Washington Tuesday appears to have led investors to conclude that inflation is essentially no longer a serious threat. With major market benchmarks climbing 2% or more Tuesday morning, Wall Street appears ready for what could become a massive end-of-year stock market rally. Here's how a single report on the Consumer Price Index (CPI) led so many investors to decide that inflation is down for the count.
Source Fool.com
