Stocks Soar as Inflation Eases, But What's Next?

The stock market is on a roll, with the S&P 500, Dow Jones, and Nasdaq all pushing towards new highs. This surge comes after a recent report showed inflation isn't as bad as some feared. Lower inflation is good news for everyday folks struggling with high prices. It's also a green light for the Federal Reserve to cut interest rates, which could help the job market. The Fed has been cautious about cutting rates because lower rates can sometimes make inflation worse. But after this report, traders are now almost certain that the Fed will cut rates at its next two meetings. The focus seems to be more on jobs than on inflation right now. Stocks have been a bit shaky lately, with some worries about high prices and risky bank loans. But they keep bouncing back. Banks say their problems are just minor setbacks, and President Trump's tariff threats might be eased after his meeting with China's leader. Big companies are reporting better profits than expected. Ford, Intel, and Google's parent company Alphabet all had strong days. Ford's profits were higher than expected, and Intel credited the AI boom for its success. Alphabet got a boost from a big deal with Anthropic for its AI chatbot, Claude. Not everyone had a good day, though. Newmont Mining fell even though it reported strong profits. Gold has been on a hot streak, but its price has stalled recently. Some worry it went up too fast. Meanwhile, the bond market is steady, and consumer expectations for inflation are mixed. High inflation expectations can make things worse, so this is something to watch. Overseas, markets in Europe and Asia mostly rose. South Korea and Japan saw some of the biggest gains.