September CPI just came in hotter than expected at 3.7% vs 3.6% forecast.
Core CPI (excludes food/energy) at 2.6%, also above the 2.5% estimate.
This is now the third highest inflation print we've seen since September 2023. Sticky inflation isn't going away quietly.
Market's starting to price in the possibility the Fed might not be done. Rate hike odds ticking up. If inflation keeps running above target, Powell's got a problem—cut too soon and risk reigniting price pressures, or hold tight and watch the economy slow further.
For stocks, higher-for-longer rates mean pressure on valuations, especially growth names that rely on cheap money. Bonds aren't loving it either. Keep an eye on the 10-year yield and how mega-cap tech reacts tomorrow.
Core CPI (excludes food/energy) at 2.6%, also above the 2.5% estimate.
This is now the third highest inflation print we've seen since September 2023. Sticky inflation isn't going away quietly.
Market's starting to price in the possibility the Fed might not be done. Rate hike odds ticking up. If inflation keeps running above target, Powell's got a problem—cut too soon and risk reigniting price pressures, or hold tight and watch the economy slow further.
For stocks, higher-for-longer rates mean pressure on valuations, especially growth names that rely on cheap money. Bonds aren't loving it either. Keep an eye on the 10-year yield and how mega-cap tech reacts tomorrow.