The stock market enjoyed a broad rally, however, largely on account of core CPI—which strips out food and energy costs—slowing for the first time since July, hitting 3.2 percent annually, down from November’s 3.

To summarize, the Federal Reserve has already lowered by 50% the number of anticipated interest rate cuts in 2025. It was four in September, but that number dropped to two at the December meeting. Policymakers may revise that number lower if their economic projections once again prove incorrect.

British equities were broadly higher on Thursday, building on their strong gains seen in the last session as markets eyed potential interest rate cuts by the Federal Reserve this year following an easing core inflation reading.

Stocks are set to extend their biggest gain since the November election with jobs and retails sales data in focus.