U.S. stock indexes fell back from historical highs on Tuesday (11/12). Tesla plunged more than 6%, and Bitcoin repeatedly failed to challenge the $90,000 mark. After a week of frenzy, investors are starting to calm down and think about future trends, especially the inflation issues that may arise after Trump's administration, with the market waiting for tonight's CPI data release.
The market is waiting for tonight's CPI
As the U.S. economy continues to recover, Wall Street expects October inflation to stabilize compared to last month, but any signs of rising inflation could delay the Federal Reserve's further rate cut plans. Investors are remaining cautious ahead of today's (11/13) CPI data.
The Federal Reserve cut interest rates by 25 basis points last week and reiterated that it will make rolling policy adjustments based on data at any time. According to CME Fedwatch, traders expect a 58.7% chance of another rate cut in December, while the chance of keeping rates unchanged is 41.3%. This indicates that since Trump's election, there have been signs of increasing concern in the market about rising inflation.
Former Federal Reserve policymaker Loretta Mester said on Tuesday that if Trump's global tariff policy takes effect, the Federal Reserve's rate cuts next year may be less than previously expected.
My personal view is that the market is correct, and their cuts next year may not be as much as assumed or expected in September.
Trump's trading paused, Tesla fell 6%
Market optimism regarding Trump's tax cuts boosting corporate profits has cooled, and U.S. stock indexes fell back from historical highs on Tuesday (11/12). Tesla surged from $250 to a high of $358 after Trump confirmed his return to the White House, with an increase of up to 40%, becoming one of the biggest beneficiaries in this wave. After a week of continuous gains, it experienced a pullback yesterday, falling about 6%.
Bitcoin repeatedly failed to challenge the $90,000 mark
Since Trump confirmed his election, Bitcoin surged from $69K, finally breaking this year's high of $73,777, and has been hitting new highs daily, reaching a historical high of $89,940 yesterday, just one step away from the $90,000 mark. However, it has since fallen back to above $88K before the deadline, and the upward momentum has slightly paused. Nevertheless, Bitcoin remains the most vigorous investment target in this wave of Trump's trading.
After a week of frenzy, investors are starting to calm down and think about the future market trends.
This article 'Trump's trading paused, Bitcoin repeatedly challenges $90,000 without success, Tesla falls 6%' first appeared in Chain News ABMedia.
