Why the lowest inflation reading in 2 years is great news for the stock market

• The June CPI report revealed that inflation has dropped to its lowest level in more than 2 years.
• That’s great news for the stock market because it emboldens a soft landing scenario for the economy.
• A “100 point gain [in the S&P 500] could be ‘low end’ of a potential rally,” Fundstrat’s Tom Lee said.

The June CPI report revealed that inflation has dropped to its lowest level in more than two years, and that’s great news for both the economy and the stock market.

The consumer price index rose just 0.2% in June, below economists’ estimates for a 0.3% gain, and rose just 3% on a year-over-year basis, its lowest level since March 2021 and below estimates of a 3.1% gain.