The U.S. experienced a slight increase in inflation in October, with the personal consumption expenditures price index rising by 0.2% month-over-month and the annual inflation rate reaching 2.3%. Core inflation, which excludes food and energy prices, also rose by 0.3% for the month, resulting in an annual rate of 2.8%.
Despite the increase in inflation, U.S. stock markets saw a decline. The S&P 500 fell by 0.38% and the Dow Jones Industrial Average decreased by 0.31%.
In contrast to the stock market decline, bond prices rose as Treasury yields slipped.
Bitcoin, on the other hand, rebounded sharply, climbing 5.4% to reach $96,169.36. This divergence between Bitcoin and traditional markets highlights the cryptocurrency's unique position.
Investor sentiment remains relatively unfazed by the inflation data, with expectations of a potential rate cut at the Federal Reserve's December meeting increasing. Financial stocks have been the best-performing sector in 2024, demonstrating their resilience.
Overall, investors are adopting a cautious stance as they navigate the current market landscape.