Stocks, Bonds, Gold, & Crypto Soar As Rate-Cut Hopes Rise On Small CPI Miss

A 0.1% MoM miss in Headline CPI and continued slowing in Core CPI was all the algos needed to ‘buy all the things’.

The initial reaction to this morning’s data was a surge in rate-cut expectations – two cuts fully priced back in for 2024 and more than three more cuts priced in for 2025…

Source: Bloomberg

That sent stocks soaring…

…and TSY yields tumbling with 10Y erasing all of its increase since the last CPI print…

Source: Bloomberg

Gold is rising – from its pre April CPI level…

Source: Bloomberg

As the dollar dived back towards pre-April CPI…

Source: Bloomberg

Bitcoin rose on the cool CPI…

Source: Bloomberg

Of course, it’s still early in the day…