Stocks, Bonds, Gold, & Crypto Soar As Rate-Cut Hopes Rise On Small CPI Miss

A 0.1% MoM miss in Headline CPI and continued slowing in Core CPI was all the algos needed to 'buy all the things'.

The initial reaction to this morning's data was a surge in rate-cut expectations - two cuts fully priced back in for 2024 and more than three more cuts priced in for 2025...

Source: Bloomberg

That sent stocks soaring...

...and TSY yields tumbling with 10Y erasing all of its increase since the last CPI print...

Source: Bloomberg

Gold is rising - from its pre April CPI level...

Source: Bloomberg

As the dollar dived back towards pre-April CPI...

Source: Bloomberg

Bitcoin rose on the cool CPI...

Source: Bloomberg

Of course, it's still early in the day...