CPI Inflation Print Ignites Stock Market Futures Surge as Fed Rate Cut Hopes Soar

Market rockets on inflation data—traders betting the Fed finally blinks.

Futures Frenzy

CPI numbers just dropped—and futures aren’t just climbing, they’re screaming higher. Everyone’s piling into risk-on mode, convinced lower rates are coming. No surprise—Wall Street’s been begging for this.

Fed Watch Intensifies

Speculation’s gone into overdrive. Another soft inflation read—and suddenly cuts aren’t just possible, they’re priced in. Classic market move: hope first, facts later.

Because nothing gets money flowing like the prospect of cheaper cash—even if it’s all built on a government report and a prayer.

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Consumer prices grew by 0.4% month-over-month, above the estimate of 0.3% and rising from 0.2% in July. Core CPI, which excludes volatile food and energy items, rose by 0.3%, in line with the consensus estimate.

The data points haven’t derailed the odds of a rate cut at the upcoming Federal Open Market Committee (FOMC) meeting, where a 25 bps reduction is widely expected. The odds of a 50 bps rate cut ROSE to 9.2% compared to 8.9% yesterday, according to CME’s FedWatch tool.