Clearly the bulls are in charge right now given a combination of inflation moderating while there is no obvious recession forming on the horizon. This has investors hopeful the Fed is ready to freeze rates at the Wednesday 6/14 meeting...and maybe lowering rates sooner than expected. As such the S&P 500 (SPY) has reached a new 52 week high.
This bullish narrative got a boost in the arm Tuesday morning with the better than expected release of the Consumer Price Index (CPI) now all the way down to 4% versus 4.9% last month. On top of that the month over month reading was a very moderate 0.1% increase. This trajectory raises hopes that we can reach the Fed’s 2% annual inflation target without creating a recession.
