the market isn't necessarily rational in the short term, though in the long term, it tends to be.  It may be overreacting, but I expect that reports will attribute the rise to relief that the Fed may not have to raise interest rates as high as was feared, thus making a recession less severe and less likely.

The market isn't saying that the current inflation rate is acceptable, its saying that it may require less destructive intervention to lower it to an acceptable level. 

Gene