Stocks and Bonds Surge Higher as Inflation Slows

Stocks and bonds surge higher following a weaker than expected Consumer Price Index (CPI) report. The bond market experiences a strong rally, with lower bond yields expected to increase investor confidence and invest in stocks and other risky assets. The mounting 'Big Long' in bonds may lead to speculative squeezes, but inflation is not expected to end yet. Professional traders, including quants, are capitulating as inflation slows and the Federal Reserve shows signs of a dovish turn, leading to a significant rally in equities and bonds.