CPI Meets Forecasts; S&P 500, Nasdaq Eye Eighth Day

U.S. stocks rose Wednesday after the Labor Department’s Consumer Price Index for the month matched economists’ forecasts, sending the S&P 500 and Nasdaq Composite closer to an eighth straight daily gain. The report was released before markets opened and influenced trading across equities and fixed income.

The CPI showed both headline and core inflation in line with consensus estimates, leaving market expectations for Federal Reserve policy largely unchanged. Short- and medium-term Treasury yields ticked down after the report, while longer-term yields moved little, keeping the yield curve broadly steady for the session.

Equities advanced across most sectors. Technology and consumer discretionary stocks were among the stronger performers, and a majority of S&P 500 components finished higher, extending a multi-day streak of gains. Traders cited corporate earnings this week that included several large companies beating forecasts or offering guidance consistent with expectations.

Trading volumes were near seasonal averages and the Cboe Volatility Index eased slightly, reflecting lower intraday volatility compared with recent sessions that followed inflation surprises or geopolitical headlines. Bond market activity showed modest inflows to shorter maturities after the CPI aligned with forecasts.

A market strategist described the CPI print as “reducing the likelihood of an unexpected tightening of policy,” and said that alignment with forecasts encouraged buying on market pullbacks.

Market participants said attention will turn to upcoming economic releases and Federal Reserve commentary, including employment reports and subsequent inflation data, for further signals on policy direction. For the day, the CPI reading and corporate results kept the S&P 500 and Nasdaq on track for a potential eighth straight daily advance.