Friends
We mentioned yesterday that as negative as investors were positioned, that if today’s inflation data was better than expected you could see a robust rally. Well, the data was better than expected and we got a robust rally in both stocks and bonds. The year over year CPI number came in at 7.7% which was better than expected. A great number? No, but it’s the first real reprieve we’ve seen in inflation data this year. Bond yields plummeted and stocks soared higher with Nasdaq leading the way up over 7% for the day. Holy Cow!
By the close, the Dow Jones Industrial Average was up 1,201 points to finish the day at 33,715. The S&P 500 was up 207 points to close at 3,956. The Nasdaq Composite Index was up 760 points to close at 11,114. Gold was up $43 to trade at $1,756 per ounce, while oil was up $.41 to trade at $86.24 per barrel WTI.
I have no idea if there will be any follow through tomorrow with regards to the rally we saw in stocks today, but at least for today the bulls finally have something to celebrate. Not just that stocks moved higher, but perhaps more importantly, we might have seen the peak in inflation. Of course, only time will tell.
Have a nice evening everyone.
