On Thursday, driven by Bitcoin rising another $100,000, the entire cryptocurrency market surged. USDT at 7.25, USD/CNH at 7.27. The dollar index temporarily halted around 106.6. Gold quickly rebounded to around $2700.
The latest U.S. consumer inflation data solidified market expectations for a Federal Reserve rate cut next week. The report indicated that both the overall inflation rate and core inflation rate for November met expectations, paving the way for the Fed to continue cutting rates. The market currently believes that the probability of the Fed cutting rates by another 25 basis points next week is nearly 100%.
The number of initial jobless claims in the U.S. unexpectedly increased last week, and the number of individuals receiving unemployment benefits at the end of November continued to rise compared to the beginning of the year, due to cooling labor demand. The U.S. Department of Labor announced on Thursday that for the week ending December 7, initial jobless claims rose by 17,000, adjusted for seasonal factors to 242,000, exceeding expectations of 220,000. The number of Americans applying for unemployment benefits surged to its highest level in two months, but it remains low. In light of weak employment, traders are ramping up bets on the Fed cutting rates next year.
The U.S. November Producer Price Index (PPI) annual rate was 3%, expected 2.6%; monthly rate 0.4%, expected 0.2%. The rise in PPI coupled with weak employment affected the dollar, causing a slight dip in the dollar index.
Additionally, the U.S. November Consumer Price Index recorded the largest increase in seven months, but against the backdrop of a cooling job market, this is unlikely to prevent the Fed from cutting rates for the third time next week.
The Nasdaq has surpassed 20,000 points, reaching a new all-time high. Indeed impressive.
