Stocks and Bonds Surge as Inflation Cools, Expectations of Rate Cuts Increase

Stocks and bonds surge higher as CPI report shows cooling inflation. Expectations of the Federal Reserve leaving rates unchanged increase. The bond market experiences its third consecutive year of losses, but optimism about lower inflation and expectations of rate cuts lead to a strong rally. The mounting 'Big Long' in bonds provides a safety blanket to current yields. The benign U.S. inflation report brings hope of a 'Goldilocks' scenario for stocks and bonds, leading to a rally in the market.