Wall Street breathed a sigh of relief after a surprise slowdown in inflation spurred a stock rally and a plunge in bond yields, reinforcing bets the Federal Reserve is on track to keep cutting rates this year.
Equities erased their losses for 2025, with the S&P 500 up about 2% in its biggest gain since the aftermath of the US election. A surge in Treasuries pushed 10-year yields down by almost 15 basis points — easing fears that a 5% rate would be on the horizon. Commodities roared, with oil topping $80 a barrel. The concerted cross-asset advance was the best for a consumer price index day since at least late 2023, according to data compiled by Bloomberg.