U.S. CPI Rebound and Geopolitical Tensions Impact Rate Cut Expectations

PANews posted on X (formerly Twitter). The recent rebound in the U.S. Consumer Price Index (CPI) and ongoing geopolitical tensions have diminished expectations for interest rate cuts, leading to a sharp increase in the probability of rate hikes. This has resulted in significant sell-offs in both U.S. and Japanese bond markets, with the yield on 30-year U.S. Treasury bonds surpassing 5.20%. Global stock markets have experienced widespread declines. Ahead of Nvidia's earnings report, market opinions are increasingly divided. Despite technical indicators showing extreme caution, Goldman Sachs maintains a bullish outlook on the company. Meanwhile, Google's stock price has continued to fall following its I/O conference, although storage chip stocks and Bakkt have seen gains against the trend. Bitcoin has experienced a five-day losing streak, with exchange-traded funds (ETFs) witnessing nearly $1 billion in outflows over two days. Macroeconomic pressures continue to suppress risk assets.