Global markets rally as inflation data beats expectations

Major indices closed higher after inflation figures came in below analyst expectations, easing pressure on central banks to hold rates steady.

Traders on the floor of the New York Stock Exchange reacted quickly as the consumer price index print crossed the wire, with the S&P 500 finishing up more than one percent.

Energy and financial stocks led the advance, while technology shares tracked gains in semiconductor names following strong guidance from several chipmakers.

Bond yields slipped across the curve, and the dollar weakened modestly against a basket of major currencies as markets priced in a higher chance of rate cuts later this year.

Analysts cautioned that a single data point does not guarantee a sustained easing cycle, but fund flows into emerging-market ETFs rose for a third consecutive session.