Stock Market Surges as Inflation Cools and Investors Gain Confidence

The Dow Jones Industrial Average had its best day since November 2023, while the Nasdaq Composite and S&P 500 saw their biggest gains since April 2023, as investors reacted positively to lower-than-expected consumer inflation data. Market participants are increasingly betting that the Federal Reserve will not raise interest rates further this year, with some even speculating on a rate cut in March 2024. Bond yields fell as stocks rallied, and tech giants Microsoft and Nvidia reached all-time highs. Home Depot shares also surged after beating earnings expectations and narrowing its annual guidance.