Summary
- Stable Inflation Calms Markets: April CPI increased by 3.4% year-over-year, aligning with expectations and alleviating reflation concerns.
- Heightened Rate Cut Confidence: Slightly stabilized inflation data boosts market confidence in the likelihood of 1-2 Fed rate cuts this year.
- Liquidity Fuels Equity Rally: TGA fund releases with strong earnings reports continue to support liquidity, driving equities to new highs.