Inflation declined again in the last month to 6.5% on an annual basis, down from 7.1% in November and a 9.1% peak in June 2022. Moreover, consumer sentiment has significantly improved recently, which is expected to bode well for the broader markets.
The University of Michigan's Consumer Sentiment Index increased to 64.6 in the preliminary January survey, up from December's 59.7. In addition, with the Fed expected to slow down the pace of its rate hikes in 2023, the U.S. might succeed in avoiding a recession.
