A Rate Hike Is Basically Locked In, and Stock Market Indexes Rose Anyway
Rate-hike odds jumped to 86.7% Friday. The Dow rose 500 points on the same news. Go figure.
Overview
Friday marked 25 years since the Sept. 11 attacks, which closed U.S. markets for four days and remain the longest shutdown since the outbreak of World War I in 1914.
Inflation came in firm on Friday morning, rate-hike odds shot past 85%, and stocks went up. That sounds backward until you check the oil trade.
Details
The Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 1.3% as of 11:42 a.m. ET, the S&P 500 (SNPINDEX: ^GSPC) added 1.1%, and the Dow Jones Industrial Average (DJINDICES: ^DJI) climbed 1%. Twenty-seven of the Dow's 30 components traded higher. That's a pretty solid uptick despite a bitter dose of economic data.
Source
Originally published at www.fool.com.
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