Saxo Market Call After US CPI, small caps for the win, for a day at least.
10 snips
Aug 13, 2025 The podcast dives into the aftermath of the U.S. July CPI release, analyzing small-cap stocks' surprising rise. It questions whether this market behavior is a temporary algorithmic squeeze or a longer-lasting trend. The conversation shifts to pressing inflation issues, focusing on rising housing and healthcare costs impacting Americans. Additionally, it explores the growth of cryptocurrency and electric vehicle adoption in diverse markets, while also addressing market volatility and its relationship with economic indicators.
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Algorithmic Spike Or Durable Rally
- The US July CPI sparked a large, likely algorithmic market reaction that may or may not persist.
- Watch subsequent sessions to see if gains fade or start a durable new trend.
Headline Calm, Core Still Hot
- Headline CPI was in line month-on-month while core inflation ticked up to 3.1% year-on-year.
- Markets focused on tariffs' impact on headline inflation rather than the hotter core print.
Services Inflation Is Heating Up
- 'Super core' (services less housing services) rose 0.5% month-on-month, a very hot print.
- This component won't be tariff-driven and signals underlying services inflation pressure.