Stocks Stage Comeback as CPI Fuels Treasury Gains: Markets Wrap

Data showing US inflation cooled at a startling clip last month ignited stock and bond markets, bolstering bulls with prospects for more decisive Federal Reserve rate cuts in 2026.

Despite the numerous caveats surrounding the data impacted by the government shutdown, traders welcomed the slowest increase in consumer prices since early 2021. But that was not all. A solid outlook from giant Micron Technology Inc. underscored the voracious appetite for all things related to artificial intelligence. The S&P 500 rose nearly 1%, halting a four-day slide.