Group 1: Market Overview - U.S. tech ETFs experienced a rally due to a cooler-than-expected inflation figure, which dampened Treasury yields [1][2] - The Consumer Price Index (CPI) for November was reported at 2.7% year-over-year, alleviating inflation concerns, while the core inflation rate softened to 2.6%, the lowest since March 2021 [2] - The 10-year Treasury yield moved closer to 4.11%, providing strong support for long-duration growth assets [2] Group 2: Semiconductor Sector Performance - The VanEck Semiconductor ETF (SMH) saw a 2.4% increase, benefiting from strong earnings reported by Micron Technology Inc [3][4] - The iShares Semiconductor ETF (SOXX) advanced by 3%, as easing inflation allowed the Federal Reserve to support growth without reigniting price pressures [4] - Micron's earnings beat reinforced optimism regarding memory pricing and AI-driven demand, lifting the broader chip complex [4] Group 3: Broader Tech Sector Gains - Nasdaq-linked ETFs, including the Invesco QQQ Trust ETF, showed gains due to lower yields, which lifted valuations in megacap tech companies [5] - The Vanguard Growth Index Fund ETF gained traction, reflecting renewed investor appetite for companies with longer-dated cash flows, as inflation effects dampened and bond yields receded [6] Group 4: Investor Sentiment and Risks - Despite the enthusiasm in semiconductor ETFs, there are concerns about valuations having little margin to withstand potential disappointments if inflation figures and earnings trends turn negative [7] - Some investors are pairing tech-intensive ETFs with equal-weight or low volatility strategies to hedge against downside risk [7] - Cooling inflation and reduced yields are currently seen as potent catalysts for tech ETFs, with semiconductors leading the charge [8]

Core Viewpoint - The uncertain outlook for inflation and interest rates is expected to drive yields higher in the coming year, which will negatively impact bond prices [1] Group 1 - The potential increase in yields is attributed to the unpredictable nature of inflation and interest rate trends [1] - Higher yields could lead to a decrease in demand for bonds, as investors may seek better returns elsewhere [1] - The bond market may face significant challenges as these economic factors evolve [1]

The S&P 500 appears poised to snap a four-day losing streak on Thursday as unexpectedly cooler inflation data reignited hopes for Federal Reserve rate cuts in 2026. The rebound was turbocharged by Mic... ...

Group 1 - The current Consumer Price Index (CPI) is at 2.7%, indicating that inflation remains high and continues to impact the purchasing power of savings [2][7] - Traditional banks are offering significantly lower savings yields, with the national average at 0.39% and major banks like Chase and Bank of America providing only 0.01%, which exacerbates the loss of value in savings [3][4] - To counteract inflation, it is essential for savers to earn a return that exceeds the inflation rate, which can be achieved through high-yield savings accounts that offer rates between 4.20% and 5.00% [6][8] Group 2 - High-yield savings accounts provide a viable solution for savers to protect their funds from inflation, allowing for real growth in savings rather than a decline in purchasing power [5][6] - The disparity between inflation and savings account yields highlights the importance of moving funds to accounts that offer higher returns to maintain financial health [4][5] - Certificates of Deposit (CDs) can also be considered for locking in higher APYs, providing additional protection against inflation over a longer term [7]

Mexico’s central bank lowered its benchmark interest rate by a quarter point, the latest in a series of cuts aimed at sparking economic growth despite worries over stubborn inflation https://t.co/BymDAqxY7f ...

From the Desk of Anthony Pompliano0:00 Inflation Comes In Ice Cold Below Expectations4:10 Coinbase Announces 24/7 Stock Trading8:56 President Trump Announces $1,776 “Warrior Dividend”Enjoy! https://t.co/sUMQzh26nC ...

Core Insights - The consumer price report for November showed a lower-than-expected annual inflation rate of 2.7%, with core CPI at 2.6%, both below economists' estimates of 3.1% and 3% respectively [2] - The release of the November data was delayed due to a U.S. government shutdown, and the cancellation of October data led to unclear methodological assumptions regarding prior months' inflation levels [3] - Analysts noted that the surprising decline in inflation may be influenced by methodological issues, with some categories potentially reflecting 0% inflation, leading to uncertainty in interpreting the data [4]

Inflation Trends - US underlying inflation cooled to a four-year low in November [1] Economic Analysis - Economists agreed that "something was off" regarding the government data on inflation [1]

Inflation Overview - November year-over-year inflation rose by 27%, lower than economists' expectation of 31% [1][5] - The Bureau of Labor Statistics did not collect October data due to government shutdown [2][6][14][15][16] - The Federal Reserve ideally prefers inflation to be closer to 2% [7] Consumer Spending & Prices - Food prices increased by 26% year-over-year, lower than the previous reading of 31% [9] - Energy costs increased by 42% year-over-year, with electricity costs up by approximately 7% [10] - Shelter costs increased by 3% year-over-year, slower than the previous reading of 32% or 36% [11] - Apparel costs were essentially flat, up by two-tenths of a percent year-over-year [12] Federal Reserve & Interest Rates - There is approximately a 25% chance the Federal Reserve will cut interest rates at the January 28th meeting [12] - The Federal Reserve may cut rates once or twice in 2026, depending on the labor market [12][13] - Weaker jobs data could lead the Federal Reserve to cut rates more than once in 2026, potentially triggering some inflation [13]

Let's bring in Greg Do. That's a good idea. >> He thinks this report wasn't just noisy and full of gaps, but that it shows a downwardly biased view of inflation.Greg, am I saying that correctly. What do you see here that jumps out to you. >> Yeah, that's absolutely right, Kelly.And I think Steve put it well. Uh, it was full of gaps for sure. It was very noisy.It was messy, but there was a downward bias. And this downward bias to clarify what Steve was mentioning is due to the BLS methodology when it comes t ...