Rising too fast! On the eve of CPI data, the US bond yield approaches the key resistance level of 4.5%.
The overnight yield on the 10-year US Treasury bond rose to a four-month high of 4.43%, just a step away from the key resistance level of 4.5%. Once the yield exceeds 4.5%, the only barrier to reaching 5% will be 4.66%. In addition, the rise in US Treasury yields is also putting pressure on US stock valuations.
CPI rebound alarm sounded? Fed may press the pause button on interest rate cuts early next year.
Economists expect the overall CPI to rebound for the first time in eight months in October, while core CPI also remains sticky.
Futu Morning Post | Fed 'hawkish': interest rate cuts will only stop in December if unexpected inflation appears; Blue chips party night! Shopify soared more than 21%, sea rose more than 10%, stock prices hit a new two-and-a-half-year high.
The Federal Reserve: The one-year inflation expectation for October in the usa fell to a four-year low, Netflix rose nearly 2% to hit a record high, with 70 million monthly active users on the ad-supported subscription plan, labor market expectations are improving.
Trading volume TOP 20 | Tesla fell more than 6%, previously accumulated more than 40% in the past 5 days; Nvidia rose more than 2% approaching a new high, major banks competing to raise target price before earnings report.
On Tuesday, Tesla, with the highest trading volume in the US stock market, fell by 6.15%, with a turnover of $51.421 billion. Prior to this, the stock had risen for five consecutive trading days, with a cumulative increase of over 44% over the five days; Nvidia, ranked second, rose by 2.09%, with a turnover of $29.329 billion; and MicroStrategy, ranked third, rose by 4.88%, with a turnover of $13.736 billion.
US Treasury put positions continue to rise, with US October CPI data becoming a focus of attention.
Data released on Tuesday shows that the open interest of two-year US Treasury futures has risen for the fourth consecutive trading day, indicating traders are building put positions ahead of the release of October inflation data on Wednesday.
Loose cycle meets "tariff wall", ex-Fed officials warn: Don't count on four rate cuts next year!
① Cleveland Fed former chair Mester said that if Trump's proposed global tariffs take effect, the Fed may cut interest rates less than expected next year; ② Mester stated that the market expects the Fed's rate cut to be less than the previous four times, which may be correct.