Bond yields move inversely to prices.Ī gauge of the currency’s value against its main rivals, also declined, slumping to its lowest level in more than a year Thursday, adding another tailwind to the stock-market rally. Which started the week near 4.1%, now at 3.759%, the lowest level since June 28, according to Dow Jones Market Data. We believe the Fed has pulled off the perfect soft landing.”īorrowing costs also dipped further, with the benchmark 10-year Treasury yield “Cooling inflation and a strong and resilient labor market suggests that no recession will come in 2023. economy into a recession,” said Nigel Green, the CEO of the advisory and asset-management deVere Group. CPI data raises hopes that the Federal Reserve is going to be able to bring down inflation without steering the U.S. equity indexes reverse their losses from last week, as investors bet that an end to the Fed’s interest-hiking cycle might be in sight, while odds of a soft landing, in which inflation returns to close to the Fed’s 2% target without a recession, are improving. The encouraging economic data have helped all three main U.S. labor market remains tight even as job growth is slowing.

Meanwhile, a weekly accounting of the number of Americans applying for jobless benefits declined by 12,000 to 237,000, indicating that the U.S. The yearly rate of inflation decelerated to 3% from 4% in the prior month. consumer-price index for June rose a modest 0.2% and the rate of inflation slowed to the lowest level since 2021. The June producer report came a day after the U.S. Core PPI, which strips out volatile food and energy prices, climbed 0.1%, in line with expectations. Economists surveyed by Dow Jones expected an increase of 0.2%. The producer-price index (PPI) rose a meek 0.1% in June, according to the Bureau of Labor Statistics report. economic data suggested that the Federal Reserve has managed to bring down inflation without provoking the surge in unemployment and economic downturn that many market participants had feared. Stocks extended their gains Thursday from earlier in the week as the latest batch of U.S.

About inflation here are optimism