S&P 500 and Nasdaq Rally on Inflation Data, but Skepticism Lingers
U.S. equities climbed Thursday as investors welcomed a softer-than-expected inflation reading, though the report's unusual composition tempered enthusiasm. The Nasdaq Composite surged 1.4%, buoyed by Micron's earnings beat, while the S&P 500 gained 0.8%. The delayed November CPI showed 2.7% annualized growth—below the 3.1% consensus—but lacked October data due to government shutdown disruptions.
Market participants face analytical blind spots. The Bureau of Labor Statistics acknowledged using alternative methodologies to compensate for missing survey data, leaving economists hesitant to declare a definitive disinflation trend. 'This isn't a clean read,' cautioned one strategist, noting the absence of sequential comparisons typically available in CPI releases.
