© Reuters.
Investing.com – Markets exploded to the upside after the release of much-anticipated inflation data as they tried to gauge the Fed’s next rate move on Wednesday.
Inflation data for November recorded a very broad slowdown and was better than experts’ expectations, making it likely that the Fed will hike interest rates by just 50 basis points and adopt a less aggressive stance after the indicators slowdown and inflation response to interest rates.
Futures
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Dow Jones futures rose 1.9%, or 640 points
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Nasdaq futures rose 3.5%, or 415 points
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Futures contracts for the Standard & Poor’s 500 index rose 2.6%, or 110 points.
gold
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It jumped 2.1%, or $38, to $1,830
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– Spot gold rose $36, or 2%, to $1,830 an ounce
dollar
oil
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US NYMEX Crude Oil Prices Increase More Than 2.1%, Near $75 Per Barrel
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The benchmark was up 2.2%, near $78 a barrel levels
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It jumped close to the $18,000 levels, up 5.5%.
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It is up 7% to $1.34 levels
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Dogecoin, Cardano, Polka Dot, and Polygon Matic surged, with rates ranging from 4 to 6%.
What is driving the markets?
Trading was cautious early Tuesday morning ahead of today’s CPI report.
Investors wanted to see more evidence that inflation was continuing to fall from its four-decade peak of 9.1% in June, and that this would allow the Fed to be less aggressive in raising interest rates.
The S&P 500 is down 16.3% so far this year as the Fed increased borrowing costs by 375 basis points since March.
