US CPI rises to highest level since 1981
Major US stock indices reacted negatively to CPI data of the United States, which were higher than expected. The two key components that the market focused on were the Annual CPI, which came in at 9.1% vs. 8.8% expected, and the core figure, which was 5.9% vs. 5.7% expected.
Federal Reserve funds futures markets are now pricing a near 100% certainty that the Federal Reserve would raise rates by another 75 basis points at its July meeting.
Interest-rate sensitive stocks like the Nasdaq fell sharply, as a more aggressive increase in interest rates may now be necessary. 2-year and 10-year yields immediately soared back above 3%.
market reaction
Stock indices immediately fell on the news as investors anticipate further interest rate hikes. The Nasdaq fell 400 points and the S&P 500 also fell more than 1% in the immediate aftermath of the CPI release..
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
