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Markets Rally as Inflation Eases Further

Peakfolio Team

Sep 15, 2025

Between September 8 and September 15, stocks advanced as fresh inflation data showed continued cooling in consumer prices, reviving hopes for a Federal Reserve rate cut later this year.

The CPI report came in softer than expected, sending bond yields lower and igniting a broad-based rally across major indices. The S&P 500 climbed nearly 2% for the week, while the Nasdaq outperformed on renewed strength in growth and semiconductor names. Investor sentiment improved noticeably, with traders interpreting the report as a sign that the Fed’s tightening cycle may finally be nearing its end.


While optimism returned, analysts warned that markets could still face short-term volatility as policymakers weigh the pace of future adjustments. Energy prices remain elevated, and global growth signals are mixed. Still, the combination of easing inflation and resilient corporate earnings gave investors plenty of reason to stay engaged — marking one of the strongest weekly performances of the late summer.

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