The U.S. CPI slowed down for five consecutive months in August, and the market expects the Federal Reserve to cut interest rates by 1% next week. All major U.S. stock indexes closed higher yesterday (9/11). Republican candidate Donald Trump and Democratic candidate Kamala Harris held their first debate yesterday. Neither of them mentioned cryptocurrency. However, Kamala Harris showed strong momentum to suppress Trump. Cryptocurrency and related stocks fell. .
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ToggleCore CPI increased 0.3% monthly
The US Bureau of Labor Statistics released the Consumer Price Index (CPI) for August, with an annual increase of 2.5%, in line with market expectations. In addition, the core CPI annual growth rate was 3.2%, also in line with expectations. However, core CPI increased 0.3% monthly, the largest increase in four months. Although overall inflation fell to its lowest level since February 2021, the monthly increase in core CPI disappointed some who hoped that the Fed would cut interest rates by 50 basis points instead of 25 basis points.
According to CME Group FedWatch data, 85% of investors believe that the Federal Reserve will announce a precautionary interest rate cut next week and adjust the benchmark interest rate to 5% to 5.25%. Yesterday's figure was 66%. .
CNBC stock market guru Jim Cramer said that at a time when tensions are running high, it’s important to “keep it simple” and celebrate the Federal Reserve’s interest rate cut.
Small rate cuts are a good thing because they show confidence and lead to more rate cuts later without panic.
All major U.S. stock indexes closed higher yesterday (9/11), with technology stocks performing particularly well.
Harris performed well in the presidential debate
The U.S. presidential election is entering its final stages. Republican candidate Donald Trump and Democratic candidate Kamala Harris yesterday held the first presidential debate since President Biden withdrew from the race.
According to CNN polling data , debate observers believed Harris performed better, overwhelming Trump by a disparity of 63% to 37%. Before the debate, there was no difference in expectations between the two (50% vs. 50%).
Cryptocurrencies and related stocks fall
Neither mentioned cryptocurrencies during the debate, but Trump's temporary defeat briefly put cryptocurrencies under pressure, with both Bitcoin and Ethereum posting small losses. As technology stocks surged yesterday, crypto-related stocks also showed a downward trend. Crypto exchage Coinbase (code: COIN) fell 0.83%, and Bitcoin-based software development company MicroStrategy (code: MSTR) fell 0.28%, while mining company Marathon (code: MARA) fell 0.94%.
The share price of Trump Media Technology Group (DJT-US) fell 10.5% to US$16.68 per share.
