The U.S. Bureau of Labor Statistics released the latest Consumer Price Index (CPI) data on the evening of December 12, showing that the U.S. CPI for February rose 2.8% year-over-year, below the market’s prior expectation of 2.9% and the previous value of 3%, marking the lowest level since November last year. The month-over-month increase was 0.2%, also below the anticipated 0.3% and the prior 0.5%.

The core CPI, which excludes food and energy and is closely watched by the Federal Reserve (Fed), rose 3.1% year-over-year in February, falling short of the expected 3.2% and the previous 3.3%, hitting its lowest level since April 2021. On a monthly basis, it increased by 0.2%, below the expected 0.3% and the prior 0.4%.

Given that tariffs could drive up costs for American households, this better-than-expected result is a positive signal, easing investors' concerns about stagflation.

Will the Fed Cut Rates Again in June?

Nevertheless, the inflation outlook remains uncertain due to evolving trade policies. Against this backdrop, the Federal Reserve is unlikely to shift its stance anytime soon.

The next Fed interest rate decision will be announced on March 19, with markets widely expecting the Fed to keep rates unchanged. According to the CME FedWatch Tool, traders see potential rate cuts in June and September.

In the near term, markets will focus on tonight’s U.S. Producer Price Index (PPI) and initial jobless claims data, as well as Friday’s University of Michigan Consumer Sentiment Index.

U.S. Stocks Show Mixed Performance

Following the CPI data release last night, which alleviated recent heavy selling pressure, coupled with investors buying tech stocks on the dip, major U.S. stock indices mostly closed higher on the 12th: 

Individually, Tesla surged 7.59% after recent sharp decline. Nvidia climbed 6.43%, and TSMC’s ADR rose 3.63%. Additionally, news emerged that TSMC may establish a joint venture to operate Intel’s foundry business, boosting Intel’s stock by 4.55%.

BTC Briefly Breaks 84K, ETH Continues to Decline

Bitcoin fluctuated between 80K and 84K yesterday, breaking above 84K around 8:30 p.m. before steadily declining. As of this writing, it stands at $83,944, up approximately 1.84% over the past 24 hours.

Ethereum, meanwhile, continues to hover around $1,900, while most of the top ten cryptocurrencies by market cap posted modest gains. The Fear and Greed Index rose slightly from 27 yesterday to 34, indicating a mild improvement in market sentiment.

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