Aug CPI rose +0.1% m/m and +8.3% y/y, stronger than exp. JPMorgan Chase said today that they "maintain a pro-risk stance" as a soft landing is becoming the more likely scenario for the global economy. They added that recent data pointing to moderating inflation and wage pressures, rebounding growth, and stabilizing consumer confidence suggest the world will avoid recession. stock indexes today initially moved higher in overnight trading on optimism that the worst of the inflation news was behind us. The 10-year T-note yield jumped to a 2-3/4 month high of 3.433% after the Aug CPI report.
The stronger than expected CPI report will likely keep the Fed on track to raise interest rates by 75 bp at next week’s FOMC meeting. August consumer prices rose more than expected. stock indexes gave up overnight gains and plunged after U.S. September S&P 500 futures (ESU22) this morning fell back from a 2-week high and are down sharply by -1.64%.