After a good start to trading on the CPI data, a trap door was released. It felt like the market was falling into the abyss. But buyers emerged, and the market is exhibiting resilience.

The Dollar Index “DXY” is on the move as well. The index is getting closer to its low point at the start of February. A weaker dollar is necessary for any kind of sustained rally in U.S. and global markets.

Energy continues to lure buyers and Industrial is seeing an impressive rebound. Consumer Discretionary is the sole loser.

Fed Daly’s speech gave an oomph to the market after saying the central bank may not need more hikes to fight inflation. She noted that “policy tightening is at a point now where we don’t expect to continue to raise rates every meeting.” But also stated that “there’s a lot of uncertainty about how long it takes for rate hikes to impact the economy.”

The busy economic data week continues with tomorrow’s PPI and Q1 earnings starting on Friday.