CPI 2.5%

The CPI, as analysts expected, dropped to 2.5%, compared to 2.9% last month, which basically brings inflation back to a normal level seen in recent years.

Logically, when inflation ends, the market should rally, right? However, what investors, analysts, and funds are worried about now is that the previous rate hikes may have been too aggressive, potentially leading to deflation, which could cause an economic recession.

This is also why the market's overall response hasn't been great. They need to see upcoming employment data，jobless claim etc not be too bad, which might improve market sentiment.