The U.S. has just released Inflation Rate and Core Inflation Rate reports for February. Inflation Rate increased by 0.4% month-over-month in February, in line with the analyst consensus. On a year-over-year baisis, Inflation Rate grew by 1.7%. Meanwhile, Core Inflation Rate grew by 1.3% compared to analyst consensus of 1.4%. The reports did not show that pricing pressure is increasing, and Treasury yields have started to move lower after their release. Not surprisingly, S&P 500 futures gained upside momentum in premarket trading as lower inflation will lead to lower Treasury yields, which is bullish for the stock market and precious metals. Today, the House of Representatives is set to approve the huge $1.9 trillion coronavirus relief package which has served as supportive catalyst for the stock market this year but pushed Treasury yields to multi-month highs. Some analysts believe that a material part of $1,400 stimulus checks will go directly to the stock market which will be bullish for equities. It remains to be seen whether the stimulus package was fully priced in by the market or there is room for more upside. Stocks have become expensive after the historic rally from the lows seen back in March 2020, and traders may want to see more positive catalysts before pushing equities to new highs.