(These are the market notes on at this time’s motion by Mike Santoli, CNBC’s Senior Markets Commentator. See at this time’s video replace from Mike above.) What little tension the markets have been holding heading into CPI report was released when the numbers did not materially differ from forecasts and have been paired with what seemed to be one other signal of labor-market softening. Stock indexes released to new highs and Treasury yields compressed towards five-month lows as traders took the uptick in weekly jobless claims as permission to look by way of 3%-ish inflation and value in a number of Fed price hikes. All the higher that the weaker jobs knowledge of the previous two weeks can plausibly be seen as a head pretend, or not totally consultant of the underlying financial trajectory: If the Fed is usually responding to iffy jobs developments and broad consumption, credit score, capex and GDP-tracking exercise is agency, the market will get the “Easier Fed without needing it” that the bulls have been positioned for since mid-summer. Whatever the macro rationale, the character of the market response is fairly emphatic, hanging all the important thing chords of a bull-market symphony: Market breadth 80% to the upside, consumer-cyclical, industrial, small-cap and monetary sectors handily outperforming, semiconductors at a brand new excessive , new IPOs eagerly acquired , the VIX again under 15 . Because the S & P 500 has spent almost the previous six weeks rotating, slowing down, digesting, churning under the floor, the index itself shouldn’t be but studying as extraordinarily overstretched to the upside, however Thursday’s pop is beginning to look just a little grabby. Meme shares ramping, for one factor. As a reminder that at this time’s transfer is extra a modest acceleration of an ongoing pattern than a brand-new one, the index popped above the pattern channel outlined by an ordinary Bollinger Band path, as seen right here. Not too dissimilar from early July and mid-August. The drop in bond yields is notable although the magnitude of the decline to 4% on the 10-year in current days shouldn’t be dramatic. The bond market received to this mode of downplaying inflation and embracing a dovish Fed section earlier than the CPI hit. The charges futures market is totally priced for 3 quarter-point cuts by 12 months’s finish. Given the slight shift towards warning that took maintain amongst traders throughout its benign August-September consolidation, broad positioning appears effectively wanting aggressive extremes. The weekly NAAIM Equity Exposure Index, a gauge of energetic tactical market timers’ posture, is off current highs with room to re-expand earlier than it turns into a priority. Stocks, in fact, could be advantageous with permitting inflation to hold close to 3% with the Fed biased to ease for some time. With international fiscal spending unrestrained, a cash-and-credit fueled data-center capex frenzy raging, company steadiness sheets strong, M & A choosing up and regulators encouraging a regime of “beg for forgiveness rather than ask for permission,” nobody ought to wager in opposition to an extra upwelling of animal spirits. But keep aware of the market’s intermittent tendency to have rallies culminate on friendly-data-release days when most macro obstacles appear to have been cleared. This one: with shares again to their bull-market highs in valuation and loads of room for disappointment created by the rallies throughout asset courses, and the aid and sense of certainty they’ve ushered in. ( Learn the perfect 2026 methods from contained in the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and information right here . )