Equity markets tried to move higher on Wednesday following the CPI report. While the headline figure fell a tenth compared to last year and came in below consensus, the rest of the data set overshadows the decline. Headline inflation accelerated compared to last month, and the core figures were as expected and unchanged from last month. This leaves inflation running at more than double the Fed's target and does not allow them to ease back on interest rates. The takeaway for the market is that interest rates may not rise anymore, but they are not going down anytime soon.

The news helped lift tech stocks dependent on debt to fuel growth. The rally lifted the NASDAQ Composite by more than 1% to the highest levels in 6 months and has the index on track to extend the gains. The next target for the tech-heavy index is near 13,000 and it will be a tough line to cross. The S&P 500 is still below critical resistance at 4,150.