The latest CPI data released last night showed that the annual growth rate of the Consumer Price Index (CPI) in August fell to 2.5%, lower than the expected 2.6% and lower than 2.9% in July. It was in line with expectations and slowed down for the fifth consecutive month, the lowest level since March 2021.
Excluding food and energy prices, the annual growth rate of the core CPI in August was 3.2%, the same as the expected value and the previous value. However, the core CPI month-on-month comparison was slightly higher than expected, at 0.3%! ! !
The core CPI month-on-month data slightly exceeded expectations due to rising housing and transportation costs, reducing the possibility of a two-digit interest rate cut by the Federal Reserve. After the CPI data was released, the market believed that the probability of the Fed cutting interest rates by 1 digit this month had risen from 66% yesterday to 85%, and the probability of a 2-digit interest rate cut had dropped to 15%.
After the release of CPI data, the four major US stock indexes originally plunged collectively, but as large technology stocks boosted the market (Nvidia soared 8.15% to $116.91 per share, Meta rose 1.39%; Apple rose 1.12%...), the decline was successfully reversed at the close:
Dow Jones Industrial Average rose 124.75 points or 0.31% to 40861.71 points
S&P 500 rose 58.61 points or 1.07% to 5554.13 points
Nasdaq rose 369.65 points or 2.17% to 17395.53 points
Philadelphia Semiconductor Index rose 229.50 points or 4.90% to 4910.17 points
In the cryptocurrency market, Bitcoin followed the US stock market after the opening, and the lowest reached $55,555 at 22:45, but then started a V-turn rebound! ! Ethereum has a similar trend! Long orders are always exploded first, and then short orders are exploded!
