**U.S. CPI Data for September Sparks Market Volatility**
The U.S. CPI data for September revealed that overall CPI rose to 2.4%, slightly higher than the expected 2.3% but lower than August’s 2.5%. Core CPI also exceeded expectations, rising to 3.3% compared to the anticipated 3.2%. Meanwhile, initial jobless claims surged to 258,000, far surpassing the expected 230,000, marking a potential shift in labor market conditions.
This marks the sixth consecutive decline in overall CPI, reaching its lowest point since February 2021. Despite the drop, inflation still exceeded market expectations, causing heightened market volatility. Traders have since raised their bets on a 25-basis-point interest rate cut in November, with expectations for further cuts possibly extending into 2025. Analysts believe this CPI data will not significantly alter the Federal Reserve's outlook, but ongoing rate reductions remain likely.
In the crypto market, nearly 10,000 BTC flowed out of centralized exchanges (CEX) last week, while $100 million in stablecoins were sent to CEX platforms. Stripe has also launched USDC payments in over 150 countries, signaling broader stablecoin adoption. Meanwhile, the SEC's Gary Gensler continues to see Bitcoin and other cryptocurrencies as potential stores of value rather than widespread payment methods.
