Wall Street surged Thursday morning after a cooler-than-expected inflation report reinforced confidence that price pressures are easing and the Federal Reserve's policy path remains intact.
The Consumer Price Index rose 2.7% year-over-year in November, down from September's 3% pace and well below economists' expectations of 3.1%.
Core CPI was up 2.6% on an annual basis, undershooting forecasts of 3% and marking the lowest reading since March 2021.
Because the October CPI report was canceled due to the government shutdown, the Bureau of Labor Statistics did not publish month-over-month changes, forcing markets to focus on the broader annual inflation trend rather than near-term changes.
Economists Welcome Cooling Inflation, Urge Caution Shutdown Distorsion
Economists largely welcomed the data, while urging caution about distortions from shelter costs and shutdown-related disruptions.
Bernard Yaros, lead economist at Oxford Economics, said both headline and core inflation are tracking "well below 3% year over year," even relative to already below-consensus forecasts.
However, he noted that shelter inflation had been unusually weak ahead of November, which could have overstated the pace of cooling.
Still, Yaros highlighted encouraging signs beneath the surface, particularly in core goods inflation, a key area affected by tariff pass-through, which appears to have peaked for now.
“Inflation has lost its grip—and the Fed knows it. Today's CPI print gives the market what it needed: confirmation that disinflation is durable and policy relief is coming,” Gina Bolvin, president of Bolvin Wealth Management Group, commented in an email.
Jeffrey Roach, chief economist at LPL Financial, said several categories experienced outright deflation between September and November, including lodging away from home, recreation and apparel.
Roach added that while energy services inflation remains elevated — with electricity and utility gas prices up more than 7% year over year — the broader inflation trajectory is encouraging for markets and policymakers alike.
Top Stock Movers After The November Inflation Release
According to Benzinga Pro data, the following large-cap stocks — all with market capitalizations above $10 billion — were the top performers in the hour following the inflation report:
| Company | % Change |
|---|---|
| Maplebear Inc. (NASDAQ:CART) | +5.86% |
| AST SpaceMobile Inc. (NASDAQ:ASTS) | +5.26% |
| Apollo Asset Management Inc. (NYSE:APO) | +4.43% |
| Cintas Corp. (NASDAQ:CTAS) | +3.98% |
| FactSet Research Systems Inc. (NYSE:FDS) | +3.80% |
| Oklo Inc. (NYSE:OKLO) | +3.51% |
| Lumentum Holdings Inc. (NASDAQ:LITE) | +3.44% |
| Rocket Lab USA Inc. (NASDAQ:RKLB) | +3.23% |
| Fabrinet Inc. (NYSE:FN) | +3.19% |
| Bloom Energy Corp. (NYSE:BE) | +3.15% |
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