Why the Nasdaq Is Soaring Even as Inflation Remains High
The stock market has gotten hit hard throughout 2022, and inflation has played a big role in the bear market. The Nasdaq Composite (NASDAQINDEX: ^IXIC) has been hit the hardest out of major market benchmarks, and many high-growth stocks have lost huge portions of their value over the course of the year.
Yet all that seemed to be a thing of the past on Thursday, as the Nasdaq jumped more than 6% at midday. The move higher came after the latest reading on the Consumer Price Index (CPI) indicated a slowdown in price increases over the past year. Yet when you look more closely at the actual inflation numbers, it's far from clear that investors should consider the problem solved.
The CPI report released this morning showed that the index rose 0.4% on a seasonally adjusted basis during the month of October compared to September's level. With that move, the CPI has risen 7.7% over the past 12 months. As high as that is, it marks the lowest year-over-year increase since January 2022, and it was lower than the 7.9% year-over-year figure that most economists had expected to see.
Source Fool.com
