U.S. October CPI came in broadly above expectations, sending both U.S. stocks and BTC lower
October CPI rose 0.4% month over month (vs. 0.3% expected), while core CPI rose 0.3% (vs. 0.2% expected), keeping core inflation at 0.3% for a third straight month. Housing accounted for more than a third of the increase, while food rebounded 0.5%.
There are no year-over-year figures due to the impact of last year’s shutdown, but inflation remains sticky. Waller had previously said that if core inflation came in at 0.3%, he would consider a 50-bp hike. After the data release, a 25-bp hike in December was all but priced in, while the probability of a 50-bp hike briefly rose above 10%.
The S&P 500 fell 0.38%, the Nasdaq 0.74%, and the Dow 0.30%. Tech stocks led the declines, as rising rate expectations weighed on valuations.
$BTC quickly fell to around 72,800, then traded between 73,000 and 74,000, testing support at the 200-day moving average. Bulls took a serious beating.
Sticky inflation and rising rate-hike expectations are weighing on risk assets in the short term. For U.S. stocks, watch sentiment toward tech; for BTC, watch whether it can hold 73,000. Oil prices and the December FOMC meeting also remain key things to watch.
#CPI高于预期，美股与BTC再度承压
October CPI rose 0.4% month over month (vs. 0.3% expected), while core CPI rose 0.3% (vs. 0.2% expected), keeping core inflation at 0.3% for a third straight month. Housing accounted for more than a third of the increase, while food rebounded 0.5%.
There are no year-over-year figures due to the impact of last year’s shutdown, but inflation remains sticky. Waller had previously said that if core inflation came in at 0.3%, he would consider a 50-bp hike. After the data release, a 25-bp hike in December was all but priced in, while the probability of a 50-bp hike briefly rose above 10%.
The S&P 500 fell 0.38%, the Nasdaq 0.74%, and the Dow 0.30%. Tech stocks led the declines, as rising rate expectations weighed on valuations.
$BTC quickly fell to around 72,800, then traded between 73,000 and 74,000, testing support at the 200-day moving average. Bulls took a serious beating.
Sticky inflation and rising rate-hike expectations are weighing on risk assets in the short term. For U.S. stocks, watch sentiment toward tech; for BTC, watch whether it can hold 73,000. Oil prices and the December FOMC meeting also remain key things to watch.
#CPI高于预期，美股与BTC再度承压