Markets Dive As U.S. Inflation Shows No Sign Of Easing

Markets plummeted Thursday after the latest report from the U.S. Bureau of Labor Statistics showed that core inflation in the country hit a new four-decade high in September.

While the headline Consumer Price Index increased less than half a percent month-over-month, and only 8.2% year-over-year – less than the 8.3% registered in August – core inflation, which does not include the price of food and energy due to their volatility, increased 6.6% year-over-year. It was the highest such increase since August 1982.

Inflation data has come under the microscope this year, as it guides the US Federal Reserve’s decision-making process regarding interest rates.

Federal funds futures now indicate a 94% probability of another 0.75% hike at the Fed’s next meeting on Nov. 2, according to CME FedWatch.

Fed Rate Probabilities

The S&P 500 and the tech-heavy Nasdaq each fell nearly 3% after markets opened Thursday but have since reversed those losses and are now up 1%.

S&P 500 Index. Source: TradingView

As of 1130 ET, Ether was down almost 4% after hitting a three-month low of $1,190 after the data was released.

Bitcoin and Binance’s BNB are down around 4% while Solana has dipped nearly 8%.