Wall Street reacted positively to a slower-than-expected US inflation rate, with stocks rising and expectations for Federal Reserve rate cuts increasing. The Consumer Price Index (CPI) showed a decrease in inflation, with notable drops in energy and transportation costs. Analysts expressed caution about interpreting the data, highlighting potential risks in future inflation readings. The Federal Reserve is expected to maintain interest rates, while markets anticipate a 78% chance of a rate cut in June. European stocks also rose, with significant gains in banking and industrial sectors. Geopolitical risks are easing, but trade tensions remain a concern.