US Inflation Eases, But Stock Market Enthusiasm Fades.

The Nasdaq, S&P 500, and Dow have fluctuated throughout the day after an initial rally spurred by the latest consumer inflation report. The highly-anticipated consumer price index report for March showed that the headline number rose 5% Y/Y, slowing a full percentage point from a rise of 6% in February. However, core CPI - which excludes volatile food and energy prices - rose 5.6% Y/Y in March, in-line with expectations and higher than the 5.5% increase in February. Markets initially reacted positively to the inflation data, but momentum sputtered out as investors realized it is not enough for the Federal Reserve to pause its rate-hiking campaign. Markets are now pricing in a nearly 74% probability of a 25 basis point hike by the Fed's monetary policy committee meeting in May, followed by a pause.