The S&P 500 Just Had Its Best Day Since April. But Wall Street Sees Bigger Gains Coming.
Investors got some very good news on Tuesday morning: The Labor Department said consumer prices rose just 3.2% in October, down from 3.7% in September, meaning inflation cooled substantially last month. That news solidified hopes that the Federal Reserve has finally reached the end of its aggressive rate-hiking campaign.
Accordingly, the S&P 500 (SNPINDEX: ^GSPC) soared during trading hours, and it closed 1.9% higher, marking its best daily performance since April. But investors have reason to believe the benchmark index (and the broader stock market) will continue to climb over the next year.
CME Group's FedWatch tool uses pricing data from 30-day Federal Funds futures contracts to gauge the probability of upcoming hikes to the federal funds rate. Think of it as a barometer for monetary policy decisions.
Source Fool.com
