Fed rate-hike expectations heat up: a tug-of-war between data and debt
After the U.S. August PPI data was released last night, market expectations for a Fed rate hike in September quickly rose to about 70%. Both the crypto market and U.S. stocks plunged; at the open, all three major U.S. stock indexes fell across the board. Tech and semiconductor stocks faced the most pressure, with the Philadelphia Semiconductor Index dropping more than 3% at one point. Notable declines were seen in Intel, SK hynix, Micron, and others.
Bitcoin fell more than 2%–3%, briefly dropping below the $77,000 level. Major cryptocurrencies such as Ethereum also weakened in tandem. The entire market saw a large-scale liquidation event (according to statistics, more than 160,000 people).
Overall PPI rose 0.4% month-on-month, while the year-on-year figure accelerated to 5.4%; core PPI was relatively more moderate. Energy prices were pushed higher by the Middle East situation, and were the main driver. Tonight’s CPI will be the key: if the core data runs hot, the probability of another rate hike may rise further; if it is mild, expectations could ease.
Despite the market’s fairly hawkish pricing, some believe rate hikes are “impossible.” The reason is that U.S. debt has surpassed $40 trillion. Further rate hikes would push up long-term bond yields, increase interest burdens, and ultimately result in nobody wanting to buy U.S. Treasuries. Recent increases in long-term yields and the limited effectiveness of the Treasury’s buyback operations seem to validate this concern. There was also a mysterious options trade yesterday, with $14 million bet on the 10-year U.S. Treasury yield breaking 5%.
However, this is not a foregone conclusion. There is still buying support at auctions; higher yields can actually attract institutions pursuing returns. If the market expects a rate hike but it ultimately stays on hold, expectations could be questioned due to the Fed’s anti-inflation resolve, which may push up the term premium and put additional pressure on long-duration bonds. The Fed’s top priority remains controlling inflation, not simply accommodating fiscal needs.
In short, PPI has lifted rate-hike expectations, and tonight’s CPI will set the tone for the near-term direction. This tug-of-war is the clash between market reality and hidden debt concerns.
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☀️Holding the cup at midday, stealing a moment of calm🍃
When it comes to tea, the key is savoring slowly until the aftertaste comes to you; trading is the same📊。 Fluctuations in the market are normal—there’s no need to stay on edge and tense your mind all the time🕊️。 Learn to step away from the noise when it’s appropriate, and know that standing by to observe is also a kind of wisdom✨。 Keep your inner rhythm steady, and don’t let short-term swings disrupt your judgment。 Wait for your own time—make choices calmly, and let your progress be grounded in what you’ve cultivated💎。 To fellow travelers on the same path: only when the heart is at peace can you go far🌿
🚨BTC volatility fast update|76,766 tug-of-war, is the volume hiding something?
Current BTC/USDT is 76,766.16 (-1.92%), with a 24h high/low of 78,564 / 76,464. On the daily timeframe, the current price is hovering right near the MA60 (76,753), with buyers and sellers locked in an extreme standoff. In the intraday late segment, a burst of increased volume appeared as a red candle, but the price failed to break through effectively—be alert for a potential false breakout that lures longs.
Also watch Binance’s mining pool package distribution activity. Hot capital may rotate or divert—keep your hands in check and wait until the direction is clear.
⚠️ Risk control first: This article is for objective data sharing and reference only and does not constitute any investment advice. Futures trading involves risk—enter the market cautiously, and please avoid FOMO.
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[Replay] 🎙️ Build Binance Plaza, hold BNB|Friday, when US PPI data came out, the market dropped first—one piece of news, two interpretations. What do you think? Let’s chat~
🎙️ Build the Binance Square, hold BNB|On Friday, as soon as U.S. PPI data came out, the market first took a hit—one news item, two interpretations. What do you think? Let’s chat~