Daily News 19

Tag: Inflation data

  • Bitcoin Reacts to US PPI Data Release

    Bitcoin Reacts to US PPI Data Release

    Bitcoin slipped below $78,000 on Tuesday as traders braced for a critical week of U.S. inflation data, starting with the Producer Price Index (PPI) release. The pullback erased early-week gains that had briefly tested the $80,000 resistance level, and the broader altcoin market followed suit, with Ethereum (ETH), XRP, and BNB all posting losses.

    PPI and CPI Data to Shape Fed Rate Outlook

    The market’s focus remains fixed on the Federal Reserve’s September interest rate decision. According to Fed WatchTool data, the probability of a rate hike in September is currently priced at 62.2%. Today’s PPI figures and tomorrow’s Consumer Price Index (CPI) report are expected to be pivotal in shaping those expectations.

    Analysts suggest a lower-than-expected PPI reading could signal easing inflationary pressures, strengthening the case for a Fed rate cut and potentially triggering a positive reaction in Bitcoin and other risk assets. Conversely, a hotter-than-forecast print could dampen rate-cut hopes and apply short-term selling pressure on crypto markets.

    August PPI Data Released: Key Figures

    The U.S. Bureau of Labor Statistics released the August PPI data this morning. The results were mixed relative to forecasts:

    • Core PPI (Monthly): 0.2% (Expected: 0.3%; Previous: 0.2%)
    • Core PPI (Annual): 4.6% (Expected: 4.6%; Previous: 4.2%)
    • Headline PPI (Monthly): 0.4% (Expected: 0.4%; Previous: 0.0%)
    • Headline PPI (Annual): 5.4% (Expected: 5.3%; Previous: 4.7%)

    While the monthly core reading came in below expectations — a potential positive for risk sentiment — the annual headline figure ticked higher to 5.4%, above both the prior month and consensus estimates.

    Bitcoin’s Immediate Reaction

    Bitcoin’s initial price action following the data release was muted, holding near the $78,000 level as markets digested the mixed signals. Traders now await Wednesday’s CPI report for further directional clarity.

    This is not investment advice.

  • Stock Market Today: Live Updates on Market Moves

    Stock Market Today: Live Updates on Market Moves

    Traders worked the floor of the New York Stock Exchange on Aug. 25, 2026, as U.S. equities slid Thursday after domestic oil prices surged past $100 a barrel. The selloff reflected mounting anxiety that a prolonged conflict in the Middle East would fuel higher inflation and keep interest rates elevated for longer.

    Major Indexes Finish Lower

    The Dow Jones Industrial Average fell 195 points, or 0.4%. The S&P 500 declined 0.6%, while the Nasdaq Composite dropped 0.9%. The three major averages extended a losing streak to three sessions.

    Oil Prices Jump on Geopolitical Tensions

    Crude prices continued to weigh on market sentiment as the war between the U.S. and Iran entered its seventh month. U.S. West Texas Intermediate futures for October delivery climbed above $100 per barrel, while the international benchmark Brent crude for November spiked above $105 a barrel.

    Treasury Yields Hit Multi-Month Highs

    The rally in energy pushed the benchmark 10-year Treasury yield above 4.9%, its highest level since November 2023. Rising yields pressured rate-sensitive growth sectors, particularly high-beta semiconductor stocks that have led the bull market.

    Chip Stocks Lead Sector Declines

    Intel shares fell 3%, and Micron Technology declined 2%, as investors worried that higher borrowing costs and energy expenses could slow economic growth and dampen demand for semiconductors.

    Wholesale Inflation Data Fails to Soothe Nerves

    A relatively tame producer price index report did little to calm fears. The PPI rose a seasonally adjusted 0.4% in August, matching the Dow Jones consensus. On an annual basis, wholesale inflation stood at 5.4%, well above the Federal Reserve’s 2% target.

    The data arrives ahead of Friday’s closely watched consumer price index. Both gauges feed into the Fed’s preferred inflation metric, the personal consumption expenditures price index, which will not be released until after the central bank’s rate decision on Sept. 16.

    Analyst Perspective: PPI Inconclusive, Oil and Yields Raise Stakes

    “The PPI release itself was inconclusive, in that doesn’t really help to settle the question of ‘hike or no hike’ from the Fed next week, but WTI oil prices surging back above $100 and Treasury yields hitting new highs is certainly raising the stakes for investors ahead of tomorrow’s crucial CPI report,” wrote Stephen Coltman, head of macro at 21shares.

    Fed Hike Probability Climbs to 74%

    Fed funds futures were last pricing in a 74% likelihood of a quarter-point rate increase following next week’s policy meeting, according to the CME FedWatch Tool.

    Treasury Buyback Announcement Adds to Pressure

    The market’s three-day slide accelerated after the Treasury Department said it would buy back up to $6 billion in longer-term debt — triple the usual amount. Less than a month earlier, the Treasury had announced it would more than double the size of its $2 billion government debt repurchase operations.

    — CNBC’s Jeff Cox and Spencer Kimball contributed to this report.