Cooling Inflation Sparks Renewed Optimism

[Trading With Larry Benedict]( Cooling Inflation Sparks Renewed Optimism By the Opportunistic Trader Editorial Team The consumer price index (CPI) inflation report for April came out this Wednesday. And it has some good news for investors… After January’s 3.1% CPI reading, we saw two successive higher prints. (Inflation rose 3.2% annualized in February and 3.5% in March.) But the latest CPI data shows consumer price increases slightly cooled in April, rising 3.4% annualized. If inflation continues to decrease, it’s likely we’ll see one or more interest rate cuts this year. And that would benefit stock prices. Check out the chart below. It shows the CME FedWatch Tool, which gauges traders’ expectations for interest rates. As you can see, 67% of traders now expect the Federal Reserve to cut rates one or more times by its September meeting. Only 33% of traders expect the Fed to keep rates the same. CME FedWatch Tool Probabilities for Interest Rates [chart] Source: CME Group [(Click here to expand image)]( The S&P 500 and the Nasdaq both made new all-time highs this week due to this renewed optimism. And the Dow Jones Industrial Average hit 40,000 for the first time. We’ll keep you updated on the latest developments with the Fed – and continue bringing you the best trading insights around. In the meantime, you can catch up on this week’s content by checking out the links below… Recommended Link [Elon Musk’s Crazy New Experiment… REVEALED]( [image]( On January 28th of 2024… Elon Musk launched a crazy AI experiment involving a real human in California. [Click here to see the mind-blowing results.]( Elon already invested $100 million of his own money into this AI project… Because he knows the profits here could be ridiculous. [Details here.]( -- --------------------------------------------------------------- [thumbnail]( [What Bitcoin Hints About the Stock Market’s Rally]( Let’s take a look at what bitcoin is telling us may come next… --------------------------------------------------------------- [thumbnail]( [Even Positive Earnings Can’t Stop Coinbase’s Slide]( Since peaking in March, shares in COIN have drifted. So let’s see where it’s heading next… --------------------------------------------------------------- [thumbnail]( [Why You Don’t Want to Be a Lone Wolf Trader]( If you believe legendary traders are so-called Lone Wolves – guys who singlehandedly beat the market – well, I’m sorry to burst your bubble... --------------------------------------------------------------- [thumbnail]( [After Its Massive Run, Let’s See If Oil Has Further to Fall]( I warned readers in April that oil stocks were in danger of a pullback. I was right. So let’s check today if that fall has further to go… --------------------------------------------------------------- [thumbnail]( [Meme Stock Mania Is Back]( Retail traders are tripping over themselves to buy meme stocks again… --------------------------------------------------------------- [thumbnail]( [The “Beijing Bounce” Is in Danger of Overheating]( The iShares China Large-Cap ETF (FXI) broke short-term resistance and rallied. So let’s check its prospects from here… --------------------------------------------------------------- [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](