Stocks Rebound, Yields Fall As Inflation Data Meets Expectations
• Core PCE price index rose 0.4% monthly and 2.8% annually in January, matching economists' expectations • Stock indexes reversed premarket declines following the inline report, with the Dow up 0.1%, S&P 500 up 0.4%, and Nasdaq up 0.8% • Bond yields fell, with the 10-year Treasury yield dropping from 4.339% to 4.248% • Markets feared worse inflation data, so inline print brought relief rather than enthusiasm • Next month's CPI report will indicate if January's uptick in inflation is a new trend or a blip