Inflation Drops, Stocks Surge
Update: 2025-12-18
Description
Stocks surged this week as the Consumer Price Index report revealed a cooling inflation rate, sparking hope for interest rate cuts. The two point seven percent annual inflation rate, the lowest since July, could prompt the Federal Reserve to reduce rates, boosting economic activity and stock appeal. Major indexes, including the S and P five hundred and Nasdaq, broke a losing streak, with companies like Coursera and Udemy seeing significant stock price increases. This market reaction underscores the impact of economic data on investor sentiment, potentially signaling a turning point for the economy.
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