$BTC $XAU $XAG CPI sends markets into a tailspin! Is there still hope for the US market?
Let’s start with the numbers. US CPI rose to 3.7% year over year in September, above the market forecast of 3.6%, and was up 0.6% month over month. Inflation picked up again, reigniting fears that the Fed will keep raising interest rates. US stocks and Bitcoin promptly plunged.
The S&P 500 fell 1.11%—its first single-day drop of more than 1% in over 50 trading sessions. The Nasdaq slid 1.88%, with semiconductor stocks hit hardest: the Philadelphia Semiconductor Index plunged 4.3%.
We warned about semiconductors, especially memory stocks, in a post on the 8th of this month. Samsung and SK Hynix had ended their share buybacks, and their stock prices were coming under renewed pressure. I wonder if any of you managed to sell near the peak. Be sure to follow me for the latest market updates.
As the broader market was gripped by panic selling, ASML delivered a better-than-expected third-quarter report. Wall Street had hoped it would be the market’s “firefighter.”
ASML’s third-quarter revenue came in at €11.66 billion, up 55% year over year. Net profit was close to €5 billion, and gross margin surged to 57.5%. Every major metric beat market expectations.
It all looks great—but none of it can overcome the inflation crisis sparked by Trump’s war. So, is there still hope for US stocks?
I think a turnaround could come quickly. As long as the Strait of Hormuz stays open and oil prices fall, easing inflationary pressure, things can get back on track. The decision is in Trump’s hands! Time to lower your head and TACO—then the rally will be on!
Let’s start with the numbers. US CPI rose to 3.7% year over year in September, above the market forecast of 3.6%, and was up 0.6% month over month. Inflation picked up again, reigniting fears that the Fed will keep raising interest rates. US stocks and Bitcoin promptly plunged.
The S&P 500 fell 1.11%—its first single-day drop of more than 1% in over 50 trading sessions. The Nasdaq slid 1.88%, with semiconductor stocks hit hardest: the Philadelphia Semiconductor Index plunged 4.3%.
We warned about semiconductors, especially memory stocks, in a post on the 8th of this month. Samsung and SK Hynix had ended their share buybacks, and their stock prices were coming under renewed pressure. I wonder if any of you managed to sell near the peak. Be sure to follow me for the latest market updates.
As the broader market was gripped by panic selling, ASML delivered a better-than-expected third-quarter report. Wall Street had hoped it would be the market’s “firefighter.”
ASML’s third-quarter revenue came in at €11.66 billion, up 55% year over year. Net profit was close to €5 billion, and gross margin surged to 57.5%. Every major metric beat market expectations.
It all looks great—but none of it can overcome the inflation crisis sparked by Trump’s war. So, is there still hope for US stocks?
I think a turnaround could come quickly. As long as the Strait of Hormuz stays open and oil prices fall, easing inflationary pressure, things can get back on track. The decision is in Trump’s hands! Time to lower your head and TACO—then the rally will be on!