Markets Dive As U.S. Inflation Shows No Sign Of Easing
Core CPI At 6.6% YoY Is The Highest Since 1982
By: Aleksandar Gilbert • Loading...
Markets![Markets Dive As U.S. Inflation Shows No Sign Of Easing](/_next/image?url=https%3A%2F%2Fcdn.sanity.io%2Fimages%2F6oftkxoa%2Fproduction%2F3c878f571021116913d6fab37b49dfc67e75c020-880x496.jpg&w=828&q=75)
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.
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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%.
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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.
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Bitcoin and Binance’s BNB are down around 4% while Solana has dipped nearly 8%.
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