Real Vision: Finance & Investing
US Inflation Cools, China Tariff Truce, and UK Jobs Data: PALvatar Market Recap, May 13 2025
May 13, 2025
Discover the latest insights on U.S. inflation as it inches closer to the Fedâs target, prompting a market rally led by tech stocks. A temporary truce in U.S.-China tariffs adds momentum to the market. Meanwhile, rising unemployment in the UK signals potential rate cuts from the Bank of England. Tune in for a concise analysis that keeps traders and investors ahead of the curve.
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Quick takeaways
- Softer-than-expected U.S. inflation data shows CPI nearing the Fed's target, spurring positive market reactions, particularly in tech sectors.
- Rising unemployment and slowing wage growth in the UK raise expectations for further rate cuts by the Bank of England, impacting economic stability.
Deep dives
US Inflation Data Shows Softer Trends
The latest Consumer Price Index (CPI) data from the US reveals a 0.2% month-over-month increase, with a 12-month rise of 2.3%, which is trending toward the Federal Reserve's target of 2%. The Core CPI, excluding volatile food and energy prices, also registered a 0.2% monthly increase, with the annual figure holding steady at 2.8%, aligning with expectations. This softer inflation data contributed to a positive reaction in the stock market, as major indices experienced gains following the report. The overall implication of these trends suggests potential shifts in monetary policy as inflation approaches desired levels, impacting investor sentiment positively.
