Hotter-than-expected CPI fuels rate-hike bets, weighing on U.S. stocks and crypto markets across the board
Oct. 15 — The U.S. Department of Labor reported Wednesday that September CPI rose 3.7% year over year (vs. 3.6% expected and 3.4% previously), while core CPI rose 2.6% (vs. 2.5% expected). Both figures exceeded expectations and marked their fastest increases in five months.
In response, data from CME FedWatch showed that the probability of a rate hike in October surged from around 22% before the release to nearly 50% at one point. Markets put the odds of at least one more rate hike before year-end at 95%.
The Nasdaq Composite fell 1.88%, its biggest one-day drop since July. The S&P 500 lost 1.11%, ending a 53-day streak without a single-day decline of 1% or more. The Dow slipped 0.09%, the Philadelphia Semiconductor Index fell 4.3%, and CoreWeave plunged more than 15%.
Crypto markets saw more than $939 million in liquidations over 24 hours. Bitcoin fell below $82,000 to around $81,500, while Ethereum dropped below $2,400. Major cryptocurrencies broadly declined, and the total crypto market capitalization fell 2.23%.
The U.S. dollar, Treasuries, and precious metals also moved lower in tandem. The U.S. Dollar Index (DXY) closed below 102. Yields on 2-year and 10-year Treasuries both fell by more than 1.5%. Spot gold briefly slipped below $4,100, while silver plunged more than 5%.
Analysts said that after CPI came in hotter than expected, the Federal Reserve’s policy meeting at the end of this month will become the next key focus. If the Fed opts to raise rates, that could directly determine the depth of the current short-term correction in risk assets.
#CPI超预期比特币承压
Oct. 15 — The U.S. Department of Labor reported Wednesday that September CPI rose 3.7% year over year (vs. 3.6% expected and 3.4% previously), while core CPI rose 2.6% (vs. 2.5% expected). Both figures exceeded expectations and marked their fastest increases in five months.
In response, data from CME FedWatch showed that the probability of a rate hike in October surged from around 22% before the release to nearly 50% at one point. Markets put the odds of at least one more rate hike before year-end at 95%.
The Nasdaq Composite fell 1.88%, its biggest one-day drop since July. The S&P 500 lost 1.11%, ending a 53-day streak without a single-day decline of 1% or more. The Dow slipped 0.09%, the Philadelphia Semiconductor Index fell 4.3%, and CoreWeave plunged more than 15%.
Crypto markets saw more than $939 million in liquidations over 24 hours. Bitcoin fell below $82,000 to around $81,500, while Ethereum dropped below $2,400. Major cryptocurrencies broadly declined, and the total crypto market capitalization fell 2.23%.
The U.S. dollar, Treasuries, and precious metals also moved lower in tandem. The U.S. Dollar Index (DXY) closed below 102. Yields on 2-year and 10-year Treasuries both fell by more than 1.5%. Spot gold briefly slipped below $4,100, while silver plunged more than 5%.
Analysts said that after CPI came in hotter than expected, the Federal Reserve’s policy meeting at the end of this month will become the next key focus. If the Fed opts to raise rates, that could directly determine the depth of the current short-term correction in risk assets.
#CPI超预期比特币承压