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...

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

Gold is rising - from its pre April CPI level...

As the dollar dived back towards pre-April CPI...

Of course, it's still early in the day...

...five rate-cuts now fully priced in to the end of 2025...
{ai:summary}<p>In a world where every percentage point counts, a miss in Headline CPI led to rate-cut expectations surging and stocks soaring. But as TSY yields tumbled and gold rose, the dollar dived. Bitcoin also saw a rise in the wake of the cool CPI. #economy</p>

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

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