Wall Street reacts upwards after the US inflation data

Wall Street reacts upward, albeit marginally, to this Wednesday’s inflation data as investors try to maintain the post-election rally. The Dow Jones Industrial Average rises 0.2%. The S&P 500 gained 0.1%, as did the Nasdaq Composite.

The consumer price index for October rose slightly to an annual rate of 2.6%, which was in line with the consensus estimate of economists surveyed by Dow Jones. Core prices, which exclude food and energy, rose 3.3% last month, which was also in line with estimates.

Following the inflation report, Federal Reserve funds futures trading suggested a high probability that central bank policymakers will cut rates again next month, according to the CME FedWatch tool.

“After a series of unusually warm fall data, today’s number calms fears of an imminent slowdown in the pace of rate cuts,” said Lindsay Rosner, chief investment officer of multi-segment fixed income at Goldman Sachs Asset Management.

Tesla and Wall Street

Tesla, which has been one of the biggest winners after the elections, is up 3% again.

Major indexes fell on Tuesday as the market took a breather from the post-election rally. The 30-stock Dow fell about 382 points, or 0.9%. The S&P 500 fell 0.3%, while the Nasdaq Composite, more focused on technology, fell 0.1%.

These moves followed a rally in Wall Street after the election of Donald Trump last week, which sent shares to all-time highs. The Dow closed above 44,000 for the first time on Monday, while both the S&P 500 and Nasdaq Composite also hit new records.

Gains also spread to cryptocurrencies, pushing bitcoin above $90,000 on hopes that Trump will deliver on a series of promises to the industry.

Other important economic data due later this week include producer price index data and retail sales figures, which will be announced on Thursday and Friday, respectively.