The latest U.S. January inflation data exceeded expectations across the board. After the release of the U.S. CPI data on Wednesday, January 12, U.S. stock index futures plummeted. Traders adjusted their expectations for the next Federal Reserve interest rate cut from September to December.
Nasdaq futures fell 0.85% during the day, S&amp;P 500 index futures dropped 0.88%, and Dow futures declined 0.89%. U.S. Treasury yields surged, with the 10-year Treasury yield rising over 7 basis points to 4.615%; the U.S. dollar index saw a short-term increase, rising 0.37% during the day. Bitcoin fell below $95,000, down nearly 2% for the day.
Gold's upward momentum paused, retreating from historical highs. Aluminum prices fell for the second consecutive day due to the impact of Trump's tariffs.
Overnight, Powell's remarks were firm, and he will deliver his semi-annual monetary policy testimony before the House Financial Services Committee tonight at 23:00, providing more clues about this year's monetary policy direction.
Key market updates are as follows:
<blockquote>
<ul>
<li>Before the U.S. stock market opened, Nasdaq futures fell 0.85%, S&amp;P 500 index futures dropped 0.88%, and Dow futures declined 0.89%.</li>
<li>U.S. Treasury yields surged, with the 10-year Treasury yield rising over 7 basis points to 4.615%.</li>
<li>The U.S. dollar index saw a short-term increase, rising 0.37% during the day.</li>
<li>Bitcoin fell below $95,000, down nearly 2% for the day.</li>
<li>Popular Chinese concept stocks rose broadly, with Alibaba up over 3% and Beike up over 7%.</li>
<li>Major European stock indices opened higher, with the Euro Stoxx 50 index opening up 0.33%.</li>
<li>Gold's upward momentum paused, with spot gold down 0.22% to $2,892 per ounce.</li>
<li>Aluminum prices fell 1% to $2,618 per ton. Other base metals showed mixed results, with zinc up 1% and nickel down 1.2%.</li>
</ul>
</blockquote>
Frederic Neumann, Chief Asian Economist at HSBC Holdings plc in Hong Kong, stated: &#34;The market's reaction to Powell's remarks has been muted. Almost no one believes the Federal Reserve will quickly initiate further rate cuts, but some easing measures may still be taken later this year.&#34;
The Euro Stoxx 50 index opened up 0.33%, the German DAX index rose 0.25%, the UK FTSE 100 index increased 0.07%, and the French CAC40 index gained 0.25%.
Advanced Micro Devices (AMD) rose over 6% in pre-market trading, as the company believes it can submit a corrected report to the U.S. Securities and Exchange Commission (SEC) before the deadline.
Popular Chinese concept stocks rose broadly, with Alibaba up over 3%, Beike up over 7%, and Fangdd up over 50% in pre-market trading.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6f4ff952-6ade-491d-b60e-738d170b4cba.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6f4ff952-6ade-491d-b60e-738d170b4cba.png"/>
U.S. Treasuries fell across the board, with the 10-year Treasury yield rising 1 basis point to 4.547%. The 30-year Treasury yield increased by 0.7 basis points to 4.756%, the 5-year Treasury yield rose 1 basis point to 4.381%, and the 2-year Treasury yield increased by 0.8 basis points to 4.298%
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6dabc701-4d9a-46a1-891d-365a3a0816d0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/6dabc701-4d9a-46a1-891d-365a3a0816d0.png"/>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a8517e08-4f75-4700-a0e9-3fbeb7dd951f.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a8517e08-4f75-4700-a0e9-3fbeb7dd951f.png"/>
The rise of gold has temporarily paused, with spot gold down 0.22% to $2,892 per ounce.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/15578433-da83-403e-99df-45dfcc78dbdc.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/15578433-da83-403e-99df-45dfcc78dbdc.png"/>
Bitcoin is down 2.1% to $96,165.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e281d2d7-58a0-4ef9-8d6f-70737c40382f.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/e281d2d7-58a0-4ef9-8d6f-70737c40382f.png"/>
The yield on Germany's 10-year government bonds rose by 0.7 basis points to 2.44%, while the yield on the UK's 10-year government bonds increased by 1 basis point to 4.52%.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/38404925-bb08-41e9-aa4b-0b85aba833d0.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/38404925-bb08-41e9-aa4b-0b85aba833d0.png"/>
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U.S. January inflation data exceeded expectations, leading to a significant drop in U.S. stock futures, with Nasdaq futures down 0.85%, S&P 500 down 0.88%, and Dow Jones down 0.89%. U.S. Treasury yields rose, with the 10-year Treasury yield reaching 4.615%. The U.S. dollar index increased by 0.37%. Bitcoin fell below $95,000, and gold retreated. Jerome Powell will deliver monetary policy testimony in the House of Representatives tonight, and the market has adjusted its expectations for future interest rate cuts

- The latest U.S. inflation data for January exceeded expectations, leading to a sharp decline in U.S. stock index futures.  
- Traders adjusted their expectations for the next Federal Reserve rate cut from September to December, while U.S. Treasury yields rose significantly.  
- Bitcoin fell below $95,000, and gold prices paused their upward trend, reflecting mixed market reactions to Federal Reserve Chair Powell's upcoming testimony.

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Inflation exceeds expectations across the board! U.S. stock futures plummet sharply, U.S. Treasury yields rise rapidly, and the U.S. dollar index surges in the short term