Group 1 - U.S. consumer prices increased by 0.4% month over month in August, while the year-over-year gain was 2.9%, aligning with expectations when excluding food and energy prices [1] - Core prices also met expectations, indicating stability in inflation metrics, which supports the Federal Reserve's potential decision to cut interest rates next week [2] - The stock market showed positive movement on Thursday, reflecting investor sentiment in response to the inflation data [2] Group 2 - The New York Stock Exchange and Nasdaq observed a moment of silence to commemorate the 24th anniversary of the 9/11 terrorist attacks, highlighting the significance of the day in the financial community [3]

This is a Bloomberg Money Minute. U.S. consumer prices rose at a slightly higher pace than expected month over month in August, but the year over year gain matched expectations. Consumer prices rose 4/10 percent month over month and 2.9% year over year, stripping out volatile food and energy prices as the Fed prefers to do. Prices rose 3/10 percent in August from the month before and 3.1% year over year.Those so-called core prices matched expectations. And overall, this new report keeps the Fed on track to ...

Inflation Data and Federal Reserve Response - The Consumer Price Index (CPI) showed core prices rose by 3.1% in August, consistent with July's level, while month-over-month growth was slightly higher than expected at 0.4% compared to the anticipated 0.3% [1][2] - Headline inflation increased by 2.9% in August, up from 2.7% in July, indicating broad increases in goods, services, and shelter prices [2] - The inflation data suggests a 25-basis point rate cut is likely, but does not support a larger 50-basis point cut [3][6] Job Market Trends - Initial jobless claims rose to 263,000, the highest level in four years, indicating softening in the job market [4] - The economy added only 22,000 jobs in August, significantly below the expected 75,000, with the unemployment rate increasing to 4.3% from 4.2% [4][5] - Job growth for June was revised to a loss of 13,000 jobs, and July's growth was below trend, marking three consecutive months of slowing job growth [5][6] Market Expectations - Markets are pricing in a near certainty for a 25-basis point rate cut at the upcoming Federal Reserve meeting [6] - Fed Chair Jerome Powell indicated a potential shift in policy stance due to changing risk balances, suggesting a readiness to lower rates [6] - Former Kansas City Fed president Esther George noted that recent job market data supports the expectation of a 25-basis point cut [6]

Market Performance - S&P 500 and Dow Jones rose as traders anticipate interest rate cuts by the Federal Reserve, with S&P 500 hitting a new all-time intraday high [1] - The S&P 500 rose over 0.33%, Nasdaq Composite was up 0.42%, and Dow Jones increased by 0.21% [1] - The S&P 500 finished at all-time closing highs for two consecutive days, despite Dow Jones losing over 200 points [2] Inflation and Federal Reserve - The core consumer price index rose 0.3% from July, indicating relatively calm inflation [2] - Analysts expect the Federal Reserve to cut interest rates by 25 basis points next week, with two additional cuts anticipated this year [3] Sector Performance - Nine of the 11 sectoral indices were trading in green, with the health sector leading gains while communication services lagged [3] - Salesforce, Goldman Sachs, Apple, and Nike were among the gainers, while Amazon and Microsoft faced declines [4] Commodity Prices - Spot gold fell 0.5% to $3,624.11 per ounce, and crude oil prices decreased by 1.9% to $62.44 per barrel [4] Cryptocurrency - Bitcoin remained stable at $113,617.69 [5]

Group 1: Bitcoin Market Reaction - Bitcoin price remained stable around $114,000 as ETF flows reached an 8-week high, with a slight gain of 0.3% in the past day [1] - The consumer price index (CPI) data indicated a 0.4% inflation rise in August, surpassing the 0.2% increase in July [1][2] - Analysts at QCP Capital suggested that any volatility from the CPI data will be short-lived, noting that the Producer Price Index (PPI) generally leads CPI by 3-6 months [5] Group 2: Federal Reserve Expectations - Inflation over the past 12 months has risen to 2.9%, moving away from the Federal Reserve's 2% target, but hopes for a rate cut remain [2] - Following the CPI release, the percentage of investors expecting a 50 basis point cut in September decreased from 12% to 9% [3] - A prediction market indicated that 84% of users expect a 25 basis point cut, while 12% anticipate a 50 basis point cut [4] Group 3: Market Indicators - The U.S. Dollar Index (DXY) briefly touched 97.66 before recovering to 97.80, indicating fluctuations in response to economic data [6] - The European Central Bank decided to hold interest rates steady, contrasting with the Federal Reserve's upcoming decisions [6]

RT Bull Theory (@BullTheoryio)BREAKING: US CPI JUST CAME IN AT EXPECTATIONS 🚨Expected: 2.9%Actual: 2.9%This was the number markets were waiting for.Why it matters 👇✦ Jobs market is already weakening (Payrolls revised down by 911,000, unemployment at 4.3%).✦ PPI and Core PPI already cooled sharply below expectations yesterday.✦ CPI matching expectations confirms inflation isn’t re-accelerating and will cool down further as PPI is dropping.What this means:➜ The Fed is still on track to cut rates in September, ...

Core Insights - Fixed income investors are encouraged to consider mortgage-backed securities (MBS) as they offer credit profiles similar to Treasuries with potential upside [1] - The WisdomTree Mortgage Plus Bond Fund (MTGP) has reached a 52-week high, with a year-to-date gain of nearly 4%, outperforming some large passive aggregate bond ETFs [2] - Anticipated interest rate cuts by the Federal Reserve could enhance the attractiveness of MTGP for bond investors [2][3] Group 1: Federal Reserve Impact - A disappointing August jobs report suggests the Federal Reserve may need to lower borrowing costs, which is significant for the mortgage market and ETFs like MTGP [3] - If the Fed signals a willingness to cut rates, it would strengthen the case for MTGP, which already presents compelling value [4] - Clarity on Fed policy could lead banks to feel more comfortable adding mortgages to their balance sheets, although timing depends on regulatory developments [6] Group 2: Market Volatility and Mortgage Valuations - Fed actions could reduce market volatility, which is beneficial for MTGP as clear intentions from the central bank can stabilize rates [7] - A significant drop in volatility has been observed since last year, supporting mortgage valuations, especially with steady rate cuts from the Fed [8] - Investors are seeking yield without excessive credit risk, and agency mortgages provide a balanced option due to their government guarantees [5]

RT Bull Theory (@BullTheoryio)🚨 TODAY’S CPI IS VERY CRUCIAL FOR YOUR CRYPTO PORTFOLIO 🚨At 8:30 AM ET, the US will release CPI and Core CPI data.Expectations:• CPI → 2.9%• Core CPI → 3.1%Why does CPI matter? Because every major data point in the past 10 days shows the economy weakening:• Payrolls revised down 911,000 jobs (biggest cut in history)• Unemployment up to 4.3% (highest since 2021)• PPI cooled to 2.6% vs 3.3% expected; Core PPI 2.8% vs 3.5% expectedTogether: jobs are weakening, wholesale inflation ...

Asian stock are trading mixed on Thursday, following the mixed cues from Wall Street overnight, on increasing optimism the US Fed will lower interest rates a couple of times this year after report showed softer-than-expected US producer price figures, while traders await US consumer inflation data later in the day. Asian markets closed mostly higher on Wednesday.Following the report, CME Group's FedWatch Tool is currently indicating a 92.1 chance of a quarter-point rate cut and a slim 7.9 percent chance of ...

Market Performance - The S&P 500 rose by 19.43 points or 0.3 percent to close at 6,532.04, while the Nasdaq increased by 6.57 points or less than a tenth of a percent to 21,886.06, both achieving new record closing highs [1] - The Dow Jones Industrial Average fell by 220.42 points or 0.5 percent to 45,490.92, impacted by declines in Apple, Salesforce, and Amazon [2] Economic Indicators - The Labor Department reported a 0.1 percent decrease in the producer price index for final demand in August, following a revised increase of 0.7 percent in July [3] - The annual rate of producer price growth slowed to 2.6 percent in August from a revised 3.1 percent in July, surprising economists who expected a rise [3][4] Federal Reserve Outlook - The unexpected decrease in producer prices has led to increased optimism regarding a potential quarter-point interest rate cut by the Federal Reserve, with a 92.1 percent chance indicated by CME Group's FedWatch Tool [4] Company Highlights - Oracle shares surged by 36.0 percent after reporting slightly weaker than expected fiscal first-quarter earnings but projecting cloud infrastructure revenue to grow to $144 billion by fiscal 2030 from $10.3 billion in fiscal 2025 [5] Sector Performance - Semiconductor stocks saw significant gains, with the Philadelphia Semiconductor Index rising by 2.4 percent to a record closing high, driven by strong revenue growth from Taiwan Semiconductor [7] - Gold stocks also performed well, with the NYSE Arca Gold Bugs Index increasing by 2.2 percent as gold prices reached a new record closing high [7] - Oil service, natural gas, and utilities stocks experienced notable strength, while retail and biotechnology stocks also moved upward [8] International Markets - In the Asia-Pacific region, stock markets generally moved higher, with Japan's Nikkei 225 Index up by 0.9 percent and Hong Kong's Hang Seng Index rising by 1.0 percent [10] - European markets showed mixed results, with the French CAC 40 Index up by 0.2 percent, while the U.K.'s FTSE 100 Index and the German DAX Index fell by 0.2 percent and 0.4 percent, respectively [10] Bond Market - Treasury yields decreased, with the benchmark ten-year note yield falling by 4.2 basis points to a five-month closing low of 4.032 percent [11]