Hot September CPI (3.7%) Triggers Rate Hike Repricing & Broad Market Selloff
September CPI came in at 3.7% vs 3.6% expected — the third highest reading since Sept 2023 — sending equities, Bitcoin, gold, and silver sharply lower while dramatically repricing Fed rate hike expectations for December.
What we know
The CPI print landed hot across nearly every category. Core goods printed at +0.25% MoM (largest in a year) and shelter at +0.39%. Citigroup immediately revised its December forecast to a 25bp hike from no change — an account on X — while CNBC reported traders are now betting on two hikes or even a 50bp move — another account on X. The 5-year yield hit a 19-year high of 5.15% — @CoinbaseMarkets. TD Securities raised its core PCE forecast to 0.36% — another account on X. Equities opened red: Nasdaq -0.63%, S&P -0.46% — another account on X. Bitcoin fell sharply — @CoinDesk — with $82-83K flagged as the critical support zone — another account on X. Gold and silver wiped $700B combined — another account on X. The White House's Hassett called it 'a blip' — another account on X — but the MOVE creator warned a 20Y yield at 6% could unleash a 'convexity vortex' — another account on X. Flood noted cash holders are winning the wealth leaderboard — another account on X.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.