The U.S. Bureau of Labor Statistics released the latest CPI data yesterday (11th) night, showing that the annual growth rate of the Consumer Price Index (CPI) dropped to 2.5% in August, lower than the expected 2.6%, and also lower than the 2.9% in July, in line with expectations. It is also the fifth consecutive month of slowdown, reaching the lowest level since March 2021.
Excluding food and energy prices, the annual core CPI growth rate in August was 3.2%, unchanged from expectations and the previous value. However, core CPI was slightly higher than expected on a monthly basis, at 0.3%. Analysts said the increase was mainly due to rising housing and transportation costs.
Chances of Fed rate cut rising to 85%
Rising housing and transportation costs pushed core CPI data slightly higher than expected on a month-on-month basis, reducing the possibility of the Federal Reserve cutting interest rates by two percentage points.
According to the CME Group's Fed Watch tool, after the CPI data was released, the market believed that the probability of the Fed cutting interest rates by 1 percentage point this month has increased to 85% from 66% yesterday, while the probability of a 2-digit rate cut has dropped to 15%.
The four major U.S. stock indexes rebounded to reverse their decline, with Huida jumping 8%
After the CPI data was released, the four major U.S. stock indexes initially plunged collectively, but as large technology stocks boosted the market (Huida soared 8.15% to $116.91 per share, Meta rose 1.39%; Apple rose 1.12%...), they successfully reversed the trend at the close. Downtrend:
- The Dow Jones Industrial Average rose 124.75 points, or 0.31%, to close at 40861.71 points
- The S&P 500 index rose 58.61 points or 1.07% to close at 5554.13 points
- The Nasdaq rose 369.65 points or 2.17% to close at 17395.53 points
- The Philadelphia Semiconductor Index rose 229.50 points or 4.90% to close at 4910.17 points
Bitcoin V climbs $58,000 higher
Returning to the cryptocurrency market, Bitcoin fell after the opening of U.S. stocks, reaching a low of $55,555 near 22:45. However, it then started a V-turn and rebounded, reaching a maximum of $57,988 at around 2:00 midnight.
At the time of writing, it was trading at $57,603, up 0.4% in the past 24 hours.
Ethereum has a similar trend. At the time of writing, it was trading at $2,353, down 0.35% in the past 24 hours.
The entire network liquidated $146 million in the past 24 hours
In the volatile market of Bitcoin, according to data from Coinglass, in the past 24 hours, the amount of cryptocurrency liquidation across the entire network exceeded US$146 million (longs accounted for US$100 million), and nearly 42,000 people were liquidated.
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