Stocks Rebound After Inflation Moderates Slightly, Giving Investors Hope That Prices May Have Peaked

Stocks Rebound After Inflation Moderates Slightly, Giving Investors Hope That Prices May Have Peaked

Share to Linkedin The stock market rallied on Wednesday even after consumer prices came in higher than expected, and although experts think inflation may have peaked, the Federal Reserve may still need to raise rates more aggressively as it will take quite some time to return to normal levels. Consumer prices fell for the first time in eight months but remain elevated. The Dow Jones Industrial Average was up 0. 6%, around 200 points, while the S&P 500 rose 0. 5% and the tech-heavy Nasdaq Composite was flat. Stocks rose despite inflation coming in higher than expected, with prices surging 8. 3% on a yearly basis in April, according to new data released by the Labor Department. Though consumer prices were hotter than forecast by economists, the rate of inflation in April slowed for the first time in eight months, falling from 8. 5% in March: Food, shelter, airline and vehicle prices all surged, but gas prices fell roughly 6% from last month, helping offset some price gains. What's more, some experts now predict that inflation has likely peaked, though there remains a great deal of uncertainty about how long it will take for prices to return to normal. Rates