Impact of CPI Data on Market Dynamics (E85)

The CPI data came out higher than anticipated, which makes sense considering the ongoing uncertainty in the market and the rising costs associated with all the tariff wars currently unfolding. This inflationary pressure is affecting numerous sectors, creating a ripple effect that is hard to ignore. Bitcoin is trading at 118k, having seen a decrease from its previous 120k level, reflecting the volatile sentiment in the cryptocurrency space influenced by broader market dynamics. SPY recently reached all-time highs last week, although it has pulled back slightly to currently sit above 629, yet there remains major support at 623 that traders are closely monitoring. Additionally, we have Powell scheduled to speak on Tuesday. His remarks will be scrutinized for key insights, especially regarding several upcoming data points that could provide a glimpse into the possibility of rate cuts in the near future, which would have significant implications for both equity and bond markets as investors adjust their strategies in response to shifts in monetary policy.