Surveying The Market Chaos After The Soft CPI Print…

Surveying The Market Chaos After The Soft CPI Print…

Well that escalated quickly…

A cooler than expected CPI unleashed hell in markets prompting a massive drop in Fed rate trajectory expectations

Source: Bloomberg

The odds of a 50bps hike tomorrow are basically unchanged but the market’s repricing the February odds dramatically with 50bps tumbling to just 32% now (from near 60%)…

Source: Bloomberg

Stocks exploded higher with Nasdaq leading the charge, up over 4%…

Source: Bloomberg

10Y Treasury yields plunged to last week’s low yields (back to September)…

The 2Y Yield puked to its lowest since Oct…

The dollar dumped…

Bitcoin soared back up towards $18,000 (one month highs)…

Gold spiked back above $1800, trading at its highest since June…

Will Powell unwind all this ‘easing’ of financial conditions tomorrow?

Tyler Durden
Tue, 12/13/2022 – 08:51

https://www.zerohedge.com/markets/surveying-market-chaos-after-soft-cpi-print