Markets Breathe Easier as Inflation Report Fails to Spark Rate Hike Fears The latest inflation report has provided some welcome relief for markets, with business prices remaining largely flat in July.
Stocks have responded positively, rising 0. 6% and 0. 8%, respectively, on the S&P 500 and Nasdaq composite indexes. The Russell 2000, which tracks small and medium size companies, also saw gains.
The news may seem encouraging, but it's essential to note that inflation remains above target at 4. 7%. This rate is significantly higher than the Federal Reserve's long held goal of 2%.