US Stock Market Surge: Nasdaq & S&P 500 Rally on Soft CPI Data

The US stock market is witnessing a significant surge following a sharp drop in the Consumer Price Index (CPI), which came in at 2.7%, lower than the expected 3.1%. This slowdown in inflation has alleviated concerns over aggressive rate hikes, prompting a retreat of short-sellers and the return of buyers. Tech earnings continue to impress, particularly in the AI sector, boosting the Nasdaq's recovery. Both the Nasdaq and S&P 500 are currently testing their 200-hour moving averages, crucial levels that could dictate the market's next direction. For the Nasdaq, a critical level to watch is at 23,115.86; a breach could lead to further upward movement. Meanwhile, the S&P 500 has successfully crossed above its 200-hour moving average (6,777.96), with the next significant hurdle at 6,833.08, which if held, could signal a strong bullish trend.