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US stocks rise after revised data shows inflation cooling at a faster rate

Feb 9, 2024, 21:45 IST
Business Insider
A person shops in a grocery store as prices are displayed on October 12, 2023 in Los Angeles.Mario Tama/Getty Images
  • Stocks climbed as CPI revision data showed inflation cooling faster than previously reported in December.
  • December CPI was revised down to a 0.2% month-over-month increase from 0.3%.
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US stocks rose on Friday as a revision December's data showed inflation is cooling at a faster pace than previously reported.

The S&P 500 topped 5,000, a closely watched milestone as the benchmark index continues to notch fresh gains in 2024. Stocks were headed for a fifth straight weekly gain.

December's consumer price index numbers were revised lower to a 0.2% month-over-month increase as opposed to 0.3% that was first reported last month. Meanwhile, fourth quarter core CPI data (which excludes food and energy prices) remained unchanged at an annualized 3.3% rate.

That's good news for investors waiting for a rate cut from a central bank that has their eyes glued to inflation.

The data revision is, however, small. Dana Peterson, chief economist of The Conference Board, said it's essentially a "nothing burger" — which is good news.

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"It's good to know we don't have lingering concerns over whether the CPI is breaking away from what we've seen in the PCE [the core inflation measure]," she said.

Core inflation data was also up 0.2% month-over-month in December.

Investors now have their focus turned toward the next CPI release for January set to come out Tuesday, after a slew of Fedspeak has reiterated the need for more "good" inflation data, further pushing back on the idea that rate cuts are imminent.

Here's where US indexes stood shortly after 9:30 a.m. opening bell on Friday:

Here's what else is going on:

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In commodities, bonds, and crypto:

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