According to ChainCatcher, 4E Exchange observed that the year-on-year growth rate of US CPI in August fell to 2.5%, falling for the fifth consecutive month, but the core CPI rose by 0.3% month-on-month, higher than expected. The market has lowered its expectations for the Federal Reserve to cut interest rates by 50 basis points next week, and the probability of a 25 basis point cut has risen to 85%.
After the data was released, the U.S. stock market experienced a V-shaped rebound after a dive at the opening, and all three major stock indexes closed higher. The Dow Jones Industrial Average rose slightly by 0.31%, the Nasdaq closed up by 2.17%, and the S&P 500 closed up by 1.07%. Technology stocks led the rebound, with Nvidia rising by more than 8%. In the foreign exchange and bulk markets, the U.S. dollar index rose strongly, non-U.S. currencies were generally under pressure, and gold prices fluctuated significantly.
CPI data shows that the Federal Reserve is approaching its 2% target. This change will support future interest rate cuts, benefit risky assets, and support the long-term rise of U.S. stocks and crypto assets such as Bitcoin. However, the Fed’s focus on core inflation may lead to more cautious monetary policy and limit the market’s short-term upside.
4E Exchange is a financial trading platform that supports cryptocurrencies, stock indices, bulk gold, foreign exchange and other assets. It is the platinum sponsor of Token2049 in 2024. 4E reminds you to pay attention to the risk of market volatility and allocate assets reasonably.