Consumer Price Index report for July released - here's what it means for your 401(k)

This greeting was a large time for Americans who want to bargain a location aliases support an oculus connected their 401(k)s.

US banal scale futures jumped affirmative aft user value ostentation eased much than expected successful June - boosting for interest-rate cuts from nan Federal Reserve later this year.

An update to the consumer value index (CPI) showed inflation is cooling. Annual CPI for June was 3 percent, little than nan complaint for May. 

And month-on-month - from May to June - ostentation fell 0.1 percent. That compared to expectations by economists polled by Reuters that it would summation by that amount. 

The news sent stocks soaring. 

While prices are still rising year-on-year, they are doing truthful astatine a overmuch little complaint than expected - which is simply a boost for nan economy. Most experts thought CPI would beryllium 3.1 per cent. 

Cooling ostentation intends much than conscionable prices falling for Americans. 

It gives nan greenish ray to Fed officials to see lowering liking rates - and specified a move cuts borrowing costs for consumers and businesses.

The intends owe rates falling, and a trim successful in installments paper rates and nan costs of loans for autos. That frees up money for Americans to spend, which is bully for businesses.

Lower rates are bully for businesses successful different measurement too. They make it cheaper for them to get and turn their business.

All of nan supra intends Wall Street likes little rates - and that intends banal prices, and 401(K)s, spell up.

Even earlier nan figures came out, world stocks had deed caller all-time highs connected Thursday arsenic traders expected nan figures to show ostentation easing and pave nan measurement for nan Fed to commencement its long-awaited liking complaint trim rhythm arsenic soon arsenic September.

That was aft different surge successful Nvidia and different Wall Street heavyweights had seen some nan Nasdaq and S&P 500 adjacent astatine caller peaks connected Wednesday.

'The main driver is really nan imaginable of liking complaint cuts,' said Shane Oliver, main economist and caput of finance strategy astatine AMP successful Sydney. 

'If we get a bully ostentation read, it will tick 1 of Powell's boxes.'

U.S. Federal Reserve Chair Jerome Powell told lawmakers connected Capitol Hill connected Wednesday that 'more bully data' would build nan lawsuit for nan U.S. cardinal slope to trim liking rates. Futures pricing implies astir a 75 percent chance of a trim successful September.