The major US stock indices fell from their all-time highs on Tuesday (11/12). Tesla plunged more than 6%, and Bitcoin failed to break the $90,000 mark several times. After a week of frenzy, investors have also started to calm down and consider the future trend of the market. Especially the inflation problem that may arise after Trump's administration, the market is awaiting the release of the CPI data tonight.
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ToggleThe market is awaiting the CPI tonight
As the US economy remains in recovery, Wall Street expects October's inflation to be stable compared to the previous month, but any signs of rising inflation could delay the Fed's further rate cuts. Investors remain cautious ahead of the CPI data on 11/13.
The Fed cut rates by one notch last week and reiterated that it will make rolling policy adjustments based on data. According to the CME Fedwatch, traders see a 58.7% chance of another rate cut in December, and a 41.3% chance of keeping rates unchanged. It can be seen that after Trump's election, the market's concerns about rising inflation have increased.
Former Fed policymaker Loretta Mester said on Tuesday that if Trump's global tariff policies take effect, the Fed's rate cuts next year may be less than previously expected.
In my view, the market is right, and their cuts next year may not be as deep as assumed or expected in September.
Trump trade pauses, Tesla down 6%
The market's optimism about the increase in corporate profits after Trump's tax cuts has cooled down, and the major US stock indices fell from their all-time highs on Tuesday (11/12). In this wave, Tesla jumped from $250 to a high of $358 after Trump's re-election, a gain of 40%, making it one of the biggest beneficiaries of this wave. After a week of consecutive gains, it fell about 6% yesterday.
Bitcoin fails to break $90,000 multiple times
Bitcoin has surged from $69K since Trump's confirmation of election, finally breaking the March high of $73,777 this year, and then hitting new highs day after day, reaching a historical high of $89,940 yesterday, just one step away from the $90,000 mark. However, it has since retreated to above $88K, with the upward momentum slowing down slightly. But Bitcoin is still the investment target with the most aggressive upward trend in this Trump trade.
After a week of frenzy, investors have also started to calm down and consider the future trend of the market.
