1. Wall Street exhaled after October inflation data came in as expected. Stocks were now set to open Wednesday’s session slightly higher after futures had spent the morning lower. Bond yields slid on the data. The S&P 500 and Nasdaq saw their postelection winning streaks end Tuesday.
2. The October consumer price index rose 0.2% month over month, matching expectations. Core CPI, which strips out volatile food and energy, also was in line, up 0.3%. The year-over-year inflation rate in October was 2.6% as expected. After the release, traders were pricing roughly 70% odds of a quarter-point interest rate cut at the Fed’s December meeting.
3. Inflation and the Fed are key to markets. But what about Donald Trump’s new regime? Elon Musk and Vivek Ramaswamy are teaming up to cut government waste. We’ll look at the big picture for our Investing Club portfolio at the November Monthly Meeting on Thursday at noon ET.
