Stocks leap on Wall Street after cooler inflation data

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Stocks leap on Wall Street after cooler inflation data
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NEW YORK — Wall Street roared in relief Tuesday after a report showed inflation cooled more than expected last month, raising the chances that the economy can...

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Wall Street roared in relief Tuesday after a report showed inflation cooled more than expected last month, raising the chances that the economy can avoid a recession.NEW YORK — Wall Street roared in relief Tuesday after a report showed inflation cooled more than expected last month, raising the chances that the economy can avoid a recession.

More importantly for markets, the slowdown cements investors’ expectations that the Federal Reserve can ease up on its aggressive hikes to interest rates. Usually, that size of an increase would be seen as a big deal because it’s double the typical move. But now that inflation is near its worst levels in generations, it would be a step down from the four straight mega-hikes of 0.75 percentage points that the Fed has approved since the summer.

Other central banks around the world, including the European Central Bank, are also likely to raise their own rates by half a percentage point this week.

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