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Markets Rally as Inflation Data Cools

By Allen Krewzz
Published June 28, 2026Updated July 3, 2026
Markets Rally as Inflation Data Cools

Why Inflation Data Moves Stock Prices

This is why growth and technology stocks often move more sharply than the broader market on inflation surprises — their valuations are generally more sensitive to changes in the assumed discount rate than steadier, more mature businesses.

Bonds Move in Sympathy

A Single Data Point vs. a Trend

The Risk of Overreacting to One Report

Why Reacting to Every Report Can Backfire for Long-Term Investors

Conclusion

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