by David Haggith
GoldSeek
With the Dow rallying 700 points for its best surge since November 6, the day after Election Day, and with bond yields getting sharply jerked back down—all due to the CPI inflation report—you’d think it was stellar news. In the headlines, it was, at least, a little bit good, but only a little. Core inflation, which the Fed watches most, dialed back one notch. That’s not much, but it sent the Dow up 700 notches! After a few months of going the wrong way, markets breathed a huge sigh that one measure of inflation had finally reversed direction.
Dig a little deeper than the headlines that were written for markets, however, and the news was a little worse than it had been. Markets that have felt like they were being throttled by inflation for the last couple of months were ecstatic over any relief they could get, so they took the good and ignored the bad.