Easing inflation and hopes of the Fed’s slower rate hike course have rekindled a broad-based rally, with the tech-heavy Nasdaq composite index gaining 7.2% over the past three months. In addition, the latest job data indicates a deceleration in wage growth, uplifting investors’ optimism that the Fed could ease off on its rate hikes going forward.
Additionally, the Consumer Price Index rose 6.5% year-over-year in December, down from a 7.1% year-over-year increase in November and its peak of 9.1% in June. Driven by this data, 80% of forecasters in the latest Reuters poll predicted that the Fed would likely hike the interest rates by 25 basis points at its next meeting, slowing its pace of tightening.
