CPI beats expectations, reigniting Fed rate hike expectations!

The last thing Wall Street wanted to see has happened: inflation is misbehaving again!
The US CPI rose 0.4% month over month in October, while core CPI rose 0.3%, both exceeding market expectations. For US stock investors, this report was like having just settled in for the weekend when the boss suddenly sends a message saying you have to work overtime.
The logic is simple: the more stubborn inflation is, the harder it is for the Fed to ease monetary policy; if interest rates stay high or rise further, companies' financing costs could increase, and future profits could be repriced.
Growth-oriented tech stocks are especially affected, as their valuations are often based on future earnings. When the market raises the discount rate, future profits become less attractive.
Of course, not all US stocks plunge together. Sectors such as energy and finance may perform differently from tech stocks, and corporate earnings and economic growth also help determine the market's direction.
After the data was released, US stocks came under pressure, and concerns about monetary policy intensified noticeably. #每周来晒 and #US October CPI exceeds expectations across the board
So don't treat every pullback as an invitation to buy the dip. Sometimes the market isn't offering a discount; it's recalculating prices. $NVDA