[CPI report shows inflation rate is 2.6%, Bitcoin exceeds 91,000]
Inflation is once again in the spotlight, and the Trump-led rally is starting to show signs of stalling. The consumer price index (CPI) rose 2.6% annually in October, in line with expectations, and core inflation was 3.3%. The report heightened investor expectations that the Federal Reserve will cut interest rates again in December, with the chance of a rate cut in December rising to 75%, according to CME Group.
Markets have been strong since Trump won the election, with Tesla shares continuing to rise in early trading on Wednesday.
Recent market dynamics:
- Stocks change direction after CPI report.
- U.S. Treasury yields fell, with the 10-year yield below 4.4%.
- Bitcoin rally extends to new highs around $91,000.
Next focus will include Cisco's earnings report after the close on Wednesday, as well as the producer price index (PPI) due to be released on Thursday morning.