Yahoo Finance: Auto Insurance Costs Dip in May: Key Industry Reports Ahead

Read the full article on Yahoo Finance.


Is inflation trending lower? Yes. The Fed's preferred inflation gauge, the PCE Price Index, has fallen to 2.70% from a peak above 7% two years ago. While still higher than the FOMC's 2% target, there's hope that slow progress on the inflation front over the back half of this year and through 2025 will occur, allowing Chair Powell and the Fed to begin cutting interest rates before too much longer.

That's been the zeitgeist, the proverbial carrot dangling in front of stock-market traders, for months. And that has, in part, fueled the rally in equities. It's not so much easing monetary policy itself, but the prospect of an easing policy rate that has promoted an underlying bullish tone across sectors. Outperforming GDP growth numbers over the second half of 2023 and robust corporate earnings results so far in 2024 have been positive catalysts too.