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Market Reaction to Inflation
- Equity markets reacted positively to the November CPI figures, anticipating a Fed rate cut.
- Despite sticky inflation, traders bet on lower rates, boosting growth stocks and impacting bond yields.
November CPI Breakdown
- November CPI rose 0.3%, slightly higher than previous months, pushing the annual rate to 2.7%.
- Shelter, food, and energy were the primary drivers of the monthly increase.
Monitoring Goods Inflation
- Watch goods inflation closely as it has been increasing since July.
- The rise in goods inflation reached its highest point since May 2023, which requires attention.