From Seekingalpha · Cain Lee · · 50s
September CPI Report Boosts Rate Hike Odds
September CPI data pushes October Fed rate hike odds higher.
In brief
September CPI data pushes October Fed rate hike odds higher. September CPI rose 0.6% monthly and 3.7% annually, increasing odds of an October Fed rate hike. Originally reported by Seekingalpha.
September CPI Report
September CPI rose 0.6% monthly and 3.7% annually, with core inflation broadening into shelter, transportation, and services.
Odds of Rate Hike Increase
Odds of an October Fed rate hike have increased, pushing Treasury yields higher and pressuring small caps and long-term bonds.
Hyperscalers Remain Defensive
Hyperscalers like Microsoft, Amazon, and Meta Platforms remain defensive, benefiting from strong cash flows and less sensitivity to rate hikes.
Short-Term Treasuries Attractive
Short-term Treasuries offer attractive yields, while sectors like REITs and utilities face competition from risk-free 5% rates.
What matters most
September CPI rose 0.6% monthly and 3.7% annually, increasing odds of an October Fed rate hike.
