Core Insights - The latest Consumer Price Index (CPI) report showed a year-over-year increase of 2.7% in November, down from 3.0% in September, indicating a cooling inflation trend [2] - Core CPI, which excludes food and energy prices, also decreased to 2.6% year-over-year in November from 3.0% in September, suggesting positive economic signals [2][4] - The stock market reacted positively to the CPI report, with the Nasdaq Composite rising 1.4% and the S&P 500 increasing by about 0.8% on December 18, followed by further gains on December 19 [4][5] Economic Indicators - The seasonally adjusted index for all items, excluding food and energy, rose by 0.2% over two months, translating to a low monthly rate of 0.1% [1] - The Federal Reserve has already cut its benchmark interest rate three times in 2025, and continued cooling of inflation may allow for additional cuts in 2026, creating a favorable environment for investors [5] Market Reactions - Following the CPI report, stocks rebounded sharply after a four-day decline, indicating investor optimism regarding potential interest rate cuts [4] - CNBC senior economics reporter Steve Liesman expressed surprise at the better-than-expected CPI numbers, highlighting the positive sentiment in the market [3]
CNBC anchor who blasted Trump’s ‘insane’ tariffs is now shocked by ‘very, very low’ inflation. How to capitalize in 2026
Yahoo Finance·2025-12-19 22:03