US equities rebounded on January 15, 2025, following the release of December’s Consumer Price Index (CPI) report, which indicated mixed results regarding inflation. The report revealed that while some prices decreased more than anticipated, others continued to rise. By 2 PM ET, the S&P 500 and Nasdaq Composite were trading up by 1.8% and 2.3%, respectively, helping to reduce losses incurred earlier in the week. Over the previous five trading days, the Nasdaq remained flat, while the S&P edged up by 0.5%. Monthly prices increased by 0.4% and yearly prices rose by 2.9%, aligning closely with forecasts. Core CPI, excluding food and energy, showed a slowdown to 3.2%, slightly below the expected 3.3%. Despite these numbers not significantly altering interest rate expectations—markets predict a 97% chance of the Federal Reserve holding rates steady—investors remained optimistic. Analysts believe there may be fewer rate changes ahead, with the possibility of the Fed’s pause extending.

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