Markets rebound after inflation data… Gold rose by 2% and the dollar fell by 1.5% By Investing.com


© Reuters.

Investing.com – Markets exploded higher after the release of much-anticipated inflation data in an attempt to gauge the Fed’s next move on Wednesday regarding rates.

Inflation data for the month of November witnessed a very large slowdown and came better than experts’ expectations, which makes it likely that the Fed will raise interest rates by only 50 basis points and will adopt a less aggressive approach after the slowdown and response of inflation indicators to interest rates.

Futures

  • Dow Jones futures rose 1.9%, or 640 points

  • Nasdaq futures rose 3.5%, or 415 points

  • Futures contracts for the Standard & Poor’s 500 Index jumped 2.6%, or 110 points.

gold

  • It jumped 2.1%, or $38, to $1,830

  • – Spot gold rose $36, or 2%, to $1,830 an ounce

dollar

oil

  • US NYMEX crude prices rose by more than 2.1%, near $75 a barrel

  • The benchmark rose 2.2%, near levels of $78 a barrel

  • It jumped near the $18,000 levels, up 5.5%.

  • It rose 7% to $1.34 levels

  • Dogecoin, Cardano, Polka Dot and Polygon Matic rose, with rates ranging from 4 to 6%.

What is driving the markets?

Trading was cautious early Tuesday morning, ahead of the CPI report due today.

Investors had wanted to see more evidence that inflation was continuing to slide from a four-decade peak of 9.1% in June, and that this would allow the Fed to be less aggressive in raising interest rates.

The S&P 500 is down 16.3% so far this year in the face of the Fed raising borrowing costs by 375 basis points since March.

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