Good news for investors. After inflation ticked higher in the first quarter, things seem to be calming down. The Consumer Price Index (CPI) rose just 0.3% in April, which is lower than expected. This means the year-over-year inflation rate slowed in April, inching down from 3.5% to 3.4%. Inflation is still higher than the Federal Reserve’s target, but it’s a move in the right direction.

Source: BLS, J.P. Morgan

This positive sign sent a wave of optimism through the market. Stocks, bonds, and even gold all jumped in value. Investors are clearly feeling confident, with the S&P 500, Dow Jones, and Nasdaq all reaching record highs.

Source: stockcharts.com, data as of 5/15/2024

There are still some concerns about a potential market correction, but for now, the party seems to be going strong. Even with some worrying about a pause, the overall sentiment remains bullish.

Here’s a quick rundown:
• Inflation: Easing, but still above target.
• Stocks: Major indexes hit all-time highs.
• Bonds: Joining the rally.
• Investor sentiment: Optimistic, perhaps even a bit complacent.

Is this the start of another long bull run? Only time will tell. But for now, investors are enjoying the ride.

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