The Street continues to react to better-than-expected inflation numbers - indices higher, yields lower, less curve inversion, and VIX is below 20.

The S&P 500 moved through the key resistance level at 4,178, and now faces a battle to hold 4,200.

Consumer Discretionary is rebounding, and is currently the second best performing sector, recovering a bulk of yesterday’s loss. Utilities is the only decliner.

The market is now pricing in a 50-basis-point rate hike in September, down from 75, according to the CME FedWatch tool.

It’s a dovish move, but not huge, as the market still believes there is a lot more work to do.