October Inflation Cools, Reducing Odds of Further Fed Rate Hikes and Fueling Stock Market Rally
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CPI inflation moderated in October with core prices rising less than expected, reducing chances of more Fed rate hikes.
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Core services inflation slowed, with key services excluding housing up 0.3% vs 0.6% prior month.
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Markets now see zero chance of a Fed rate hike in December, with odds of a cut in May.
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S&P 500 surged 1.9% Tuesday on tame inflation data, extending its massive two-week rally.
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Wednesday's retail sales will show if consumer spending is slowing; producer prices will inform on pipeline inflation.