CPI inflation report sparks data backlash

Economic Indicators - The November CPI inflation data showed a year-over-year increase of only 2.7%, significantly lower than the 3.1% expected by Wall Street, marking the first slowdown since April [2][4] - The U.S. unemployment rate rose to 4.6% in November, the highest level since 2021, which initially raised concerns about the economy [1] Market Response - The cooler-than-expected inflation data led to a rally in the stock market, which has been resilient despite rising unemployment and inflation since spring [6][4] - The stock market has experienced a nearly 30% rally since April, with a year-to-date return of 15.5%, outperforming the average 10% return since 1950 [6][8] Federal Reserve Actions - The Federal Reserve has cut the Fed Funds Rate by a quarter percentage point at three consecutive FOMC meetings since September, responding to rising unemployment [9] - The Fed's actions are seen as supportive for the jobs market, providing opportunities for revenue and profit growth for publicly traded companies [4][9] Corporate Profit Outlook - Despite higher import taxes, corporate profits are expected to climb, indicating a positive outlook for publicly traded companies [8]