CPI is positive, the crypto market has not seen a significant increase, but other markets are strong!
U.S. stocks rose across the board, led by Nvidia, and MicroStrategy announced the split time, rising sharply before the market. Tonight's CPI is mixed for U.S. stocks. Although it is conducive to the expectation of interest rate cuts, the negative monthly rate is not good for the economy.
The price of U.S. 10-year Treasury bonds rose in the short term.
Although CPI data is conducive to the expectation of interest rate cuts, judging from the current simultaneous rise in gold, U.S. bonds and U.S. stocks, it may have foreshadowed the expectation of a U.S. recession before the interest rate cut. Gold and U.S. bonds rise with U.S. stocks, which usually means risk aversion, which may come from concerns about future inflation or economic prospects. Tonight's CPI data showed that inflation has accelerated significantly. In this case, the rise in gold and U.S. bonds can only be explained as a risk-averse behavior against economic recession.
Recalling Powell's speech last week, the U.S. economy is heading towards deflation, which seems to be consistent with today's monthly rate data.