A cooler-than-expected inflation report led to optimism for a potential interest rate cut from the Federal Reserve, causing a number of stocks to surge in the afternoon session. The September Consumer Price Index (CPI) showed a 3.0% year-over-year increase, slightly lower than the 3.1% forecast. This news was seen as a positive sign of moderating inflation, increasing the likelihood of a more accommodative monetary policy. Technology and semiconductor stocks experienced significant gains as investors reacted positively to the possibility of lower borrowing costs. Among the impacted stocks was eHealth (EHTH), which has seen significant volatility in its shares over the past year. Despite today’s move, the market views the news as meaningful but not fundamentally changing its perception of the business. eHealth has experienced a 40.9% decline since the beginning of the year, trading 52.7% below its 52-week high. The company operates an online insurance marketplace, benefiting from the annual Medicare open enrollment period. Overall, the digital health sector has been optimistic, with eHealth positioned to capitalize on the increased adoption of digital healthcare and telemedicine services.

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