US annual inflation rate declines to %7.7, stocks rallied
Struggling with high inflation for a while, US has eased inflation as the latest data states CPI inflation levels declined to 7.7%. Later on, Euro and stocks rallied following this news.
The US annual CPI inflation data, which the markets have been eagerly waiting for, has been announced finally. United States have been struggling with high inflation for a long time. Luckily, annual inflation was announced as %7.7, easing worries among the market. Expectations were for %8 at CPI. However, it was observed that inflation declined and remained lighter than expectations.
Latest US CPI data shows inflation moderates in October
Inflation is 7.7% annually in US as of today, declining from 8.2% that was in the September. The so-called core rate, which does not include the volatile energy and food sectors, is about 6.3%. This is just a tiny bit lower than the previous month's 6.6%, which was the highest level since August 1982. On average, economists anticipated a headline inflation rate of 8% and a core rate of %6.5.
The fight to control inflation is still going on, and the US Federal Reserve still needs to do more. The core inflation statistics will continue to be the primary focus of the market.
Stocks rallied after latest CPI data
Following latest inflation data, The Dow Jones Industrial Average futures rose 2.6%, or 844 points. S&P 500 futures rose by 3%, while futures on the Nasdaq 100 rose by more than 3.7%.
Moreover, Tesla and Nvidia both gained more than 5%. Salesforce went up by 4%. Apple went up 3%. Lam Research, KLA, and Applied Materials were among the semiconductor companies whose shares increased by more than 5%.
