A surge in trading activity in the 60 seconds before the release of critical November inflation data this week has sparked speculation that the closely watched report was prematurely leaked.
Stock futures surged more than 1% just before the November edition of the Consumer Price Index was due for release Tuesday morning at 8:30 a.m. ET, according to Bloomberg. Treasury yields also rapidly dropped in a flurry of trades within a short window before the release.
The activity suggested that traders were prepping for a positive outcome for the report – a hunch confirmed when it was officially released. Inflation cooled to 7.1% in November, dropping lower than economists had expected.
“This is unusual, especially given the reduction in inflation that was reported, which was well in excess of what markets anticipated,” Jerome Selvers, chair of the securities regulatory enforcement & litigation practice at Pashman Stein Walder Hayden law firm, told Bloomberg.