Inflation Rate Slows More Than Predicted In March: Markets Rally As The End Of Fed Hike Cycle Looms

In this photo illustration, the US stock market index tracking the stock performance of 500 large companies listed S&P 500 logo is seen displayed on a smartphone with an economic stock exchange index graph in the background. Following the inflation report, major U.S. market indices soared before reversing the majority of gains in noon trade. BUDRUL CHUKRUT/BENZINGA

The SPDR S&P 500 is volatile Wednesday morning after the Labor Department reported a 5% year-over-year increase in the consumer price index (CPI) for March.

The headline CPI came in at 5% year-on-year in March, down from 6% in February, according to data the Labor Department reported on Tuesday. The closely watched inflation reading was below average economist estimates of 5.2%. This marked the lowest inflation print since May 2021.