Page header cover

Markets hike while the recession is cooling down

A long-awaited positive trigger for the US stock market: inflation data for October turned out to be better than expected.

  • Consumer price index CPI decreased from 8.2% to 7.7% y/y (forecast – 8.0%).
  • The core consumer price index (excluding energy and food) fell from 6.6% to 6.3% y/y (forecast – 6.5%).

Inflation data is the main benchmark for the Fed on the rate. As we expected, the new statistics turned out to be positive, which may push the Fed to soften its rhetoric.

The market, of course, reacts positively. The S&P 500 increased by 3.06% in premarket trading. The “fear index” VIX at the moment fell by 9.5%, the dollar index fell by 1.5%.

Risk appetite revived in the market.

Nevertheless, it is impossible to predict for sure how the Fed will behave at the December meeting. So there are a lot of reasons to believe that volatility will remain at high levels. 

Leave your contact details and get expert advice
By clicking the "Request a call" button, you agree to the Data Processing Policy