Hot CPI Breaks Market Calm, Defensive Positioning Surges
A hotter-than-expected CPI print ended the S&P 500's remarkable 53-day streak without a 1% drop, triggering cross-asset fear positioning, a selloff in Asian equities, and heavy BTC spot selling — with PPI and Kevin Warsh's IMF speech tomorrow as the next catalysts.
What we know
The macro shock rippled across all asset classes. An account on X highlighted the historic end of the SPX calm streak not seen since Jan 2020. Another account on X flagged a shift across $SPY, $IBIT, and $NDX into the 'fear quadrant' with elevated vol and puts bid. On BTC specifically, another account on X noted heavy spot selling via Coinbase, rising OI (shorts added), and put IV at 40.5% vs call IV 35.6%. Another account on X added context: $SPY Friday volume was the lowest since 2004, suggesting extreme complacency heading into the print. Asian markets bore the brunt: Kospi -5%, SoftBank -8% and Kioxia -8.3%. Another account on X sees PPI tomorrow and Kevin Warsh's 6:30pm IMF speech as the next key events.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.