- Wall Street rallies with Nasdaq leading gains
- CPI was flat in July after rising 1.3% in June
- In 12 months through July, CPI rose 8.5% vs 9.1% in June
NEW YORK, Aug 10 (Reuters) – Wall Street equities rallied and the dollar tumbled after signs of sharply decelerating U.S. inflation prompted bets that the Federal Reserve would raise interest rates at a slower pace than previously expected.
Treasury yields mostly pulled back from an earlier plunge as investors digested data showing that consumer prices did not rise in July as the cost of gasoline fell, delivering the first notable sign of relief for Americans who have watched inflation soar over the past two years. read more
Traders priced in a 50 basis points rate hike next month, compared with the 75 bps increase that had been expected before inflation report. read more
Register now for FREE unlimited access to Reuters.com
“This morning’s inflation report was a stress reliever…