Markets hold steady as inflation data cools rate hike fears
Markets hold steady as inflation data cools rate hike fears originally appeared on TheStreet.
The May CPI report came in softer than expected, offering a reassuring signal for markets. The second month-over-month headline inflation increase was only 0.1% compared to the expected increase of 0.2%. The core CPI (excluding food and energy) was also up only 0.1%, below this month's expected increase of 0.3%.
All of the above was on a year-over-year basis, headline CPI was reported at 2.4%, which was exactly where it was expected, while Core CPI was 2.8% year-over-year, just below the expected 2.9%.
The weak core implies moderating underlying price pressures and could give the Fed some cover to cut rates if necessary later this year.
Global markets were on the edge of their seats with only minutes to go until the release of the U.S. Consumer Price Index (CPI) for May.
According to analysts at 10x Research, although today's data will be the first to account for the effects of President Donald Trump's re-imposition of tariffs, they expect a "flat or modestly higher" CPI, which should minimize concerns about a significant uptick in inflation.
While there were initial concerns that companies would pass the tariffs on to consumers, it now seems likely that companies will absorb the costs associated with the tariffs.
Although they are likely to have considerable inventory, stockpiling has not yet elevated prices. "For the bearish narrative to regain traction, a new catalyst is needed," they claim.
According to Bitunix analysts, it could be a pivotal time for crypto. If inflation surprises on the upside, Bitcoin could test support at $106,000. At the other end, if inflation comes in 'cooler' than expected, Bitcoin prices could see resistance at $110,350.
'Short-term movements will remain event-driven,' they say, with the market largely awaiting signals from the Fed around interest rate policy.
Bitcoin is currently trading at $109,225, unchanged for the day, while Ethereum trades at $2,766.83 and Solana has gained 2.2% to $164.22 in the last 24 hours. The total crypto market cap is $3.56 trillion, down 1.4% during the previous 24 hours.
With CPI expectations 'finely tuned' and the Fed expected to remain on the sidelines, traders are preparing for volatility. But until a stronger inflation print—or a new macro catalyst—emerges, markets may remain in consolidation mode.
Markets hold steady as inflation data cools rate hike fears first appeared on TheStreet on Jun 11, 2025
This story was originally reported by TheStreet on Jun 11, 2025, where it first appeared.
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The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy. Prediction: XRP Will Top $12.50 by 2028 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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Could Central Banks Embrace Bitcoin as a Reserve Asset? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
