After the CPI data release, this past Thursday markets quickly reacted to these moves with risk appetite jumping on the potential of a "pivot" by the Federal Reserve. This move was even more observable in the rate curve in which pretty much all tenures fell as the market started to reprice a less aggressive Fed in 2023, with markets now expecting only 50bps in December.
One of the other big consequences of the CPI data was the USD and its 1 day % change which fell nearly 3%, the biggest negative move YTD. This also helped fuel the overall "risk-on" tone markets saw on Thursday and Friday.
Equities were some of the biggest winners of the CPI data with them ramping hard with QQQ gaining over 7%, its biggest 1 day gain since march 2020. This massive move was followed on Friday by even more gains, putting a potential Christmas Rally in the works as markets start to price in a "Peak Fed".
Meanwhile, in Crypto FTT the FTX token continued in freefall as the company has officially entered Chapter 11 Bankruptcy, with details and rumors still scarce there is still uncertainty with many crypto-related equities and cryptocurrencies having some of their worst performances so far this year.
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