November CPI declines release positive signals, the market logic behind the rise of US stocks

【CryptoWorld】US November CPI data released, with the inflation rate rising 2.7% year-on-year, a significant slowdown from the previous estimate of 3.1%. After the data was announced, the US stock market strengthened accordingly. The Nasdaq Composite performed the best, with a single-day increase of 1.4%, thanks in part to chip companies like Micron Technology, whose earnings reports boosted the sector overall. The S&P 500 and Dow Jones Industrial Average also followed suit, with market sentiment noticeably improving. However, it is important to note that economists pointed out certain limitations in this report. Due to the government shutdown, October data is missing, making trend analysis somewhat difficult. Nevertheless, Fundstrat analyst Tom Lee believes that this moderate inflation performance reinforces the Federal Reserve’s focus on the labor market. This signal suggests that the market bottom support is not weak, and investor expectations may adjust accordingly.