As discussed in our CPI preview, Wall Street expectations were for a soft CPI. The final number ended up being a dovish bomb with a rounded-up 2-handle, sending the dollar tumbling and stocks soaring to respective 52 week lows/highs.
Wall Street, which has been extremely bearish for most of 2023, pretended as if it hadn't been dead wrong for the duration of the post-October bull market, and spun the CPI data as the all-clear for continued gains.
Here was GS econ’s take...
