The US CPI index for April has been released. Market experts expected it to remain at March levels or rise slightly.
In real terms, it rose 0.3% month-on-month and 3.4% year-on-year. It wasn’t much different from the forecast, but the gains were curtailed. The mood is markedly different from yesterday’s PPI.
The stock market soared, and the U.S. dollar index returned to the downtrend. It was a day when worries about inflation in the U.S. were largely dampened.
If this happens, the U.S. dollar rate is expected to fall at least twice this year. However, there is still a big gap between the 3.4% CPI in April and the FED’s target of 2.0%. Still, the caution against inflation continues.
The U.S. stock market has risen significantly.
While the CPI in April remained stable and downward, Inflation worries have subsided significantly.
The Dow rose 0.9%, the S&P 500 rose 1.2% and the Nasdaq rose 1.4%. The bull cycle in the U.S. stock market seems to be starting again.
