Version 1 – Market Focus
Markets turned cautious Thursday as U.S. inflation surprised slightly to the upside, though expectations remain firm for a Federal Reserve rate cut next week.
August CPI rose 0.4%, exceeding forecasts of 0.3% and up from July’s 0.2%. Year-over-year inflation hit 2.9%, matching projections but higher than July’s 2.7%. Core CPI advanced 0.3% on the month and 3.1% annually, both in line with estimates.
Bitcoin slipped 0.5% to $113,700, stock futures held marginal gains, and gold rebounded into positive territory. Treasurys rallied, driving the 10-year yield down to 4.00%, while the dollar gained modestly.
Initial jobless claims rose sharply to 263,000, well above the 235,000 consensus, pointing to further labor market softening. The combination of stubborn inflation and weaker employment underscores the Fed’s policy challenge. Markets now overwhelmingly expect a quarter-point cut at next week’s meeting.
Version 2 – Fed Policy Lens
Fresh inflation and labor data highlight the difficult road ahead for the Federal Reserve as it weighs its first rate cut in years.
CPI for August rose 0.4% month-over-month, above expectations of 0.3%. Annual inflation stood at 2.9%, while core CPI remained steady at 0.3% monthly and 3.1% annually.
Markets reacted with mixed moves: bitcoin eased to $113,700, stock futures pared earlier gains, and gold turned positive. Treasurys rallied, with the 10-year yield falling five basis points to 4.00%.
At the same time, initial jobless claims jumped to 263,000, the highest in months, signaling that the labor market is cooling more quickly than anticipated. Traders now see next week’s Fed decision as locked in for a 25-basis-point cut, while speculation of a larger move has largely disappeared.
Version 3 – Fast-Paced Headline Style
- Inflation heats up: August CPI +0.4% vs. +0.3% est. Annual CPI 2.9%, Core CPI 3.1%.
- Markets react: Bitcoin -0.5% to $113,700; stocks flat; gold +0.15% to $3,675; 10-year yield drops to 4.00%.
- Jobs data softens: Weekly jobless claims spike to 263,000 vs. 235,000 est.
- Fed outlook: Traders now fully price in a 25-basis-point cut next week; odds of a 50-basis-point cut fade.
