US CPI falls below 5% for the first time in 2 years, IT and virtual currency related stocks rise | 11th Financial Tankan

US CPI falls below 5% for the first time in 2 years, IT and virtual currency related stocks rise | 11th Financial Tankan

Time Stamp: May 10, 2023 9:59 PM
Source Node: 2642695

5/11 (Thursday) morning market trends (compared to the previous day)

traditional finance
NY Dow: $33,487 -0.2%
Nasdaq: $12,179 -0.6%
Nikkei Stock Average: ¥29,122 -0.4%
USD/JPY: 134.2 -0.01%
USD Index: 101.2 -0.3%
10 year US Treasury yield: 3.4 -2.3% annual yield
Gold Futures: $2,036 -0.2%
crypto assets
Bitcoin: $27,785 +0.5%
Ethereum: $1,851 +0.3%

NY Dow today
Today’s NY Dow fell slightly to -73.9 dollars. The Nasdaq was -$77.3. The US CPI announced last night showed continued disinflation, but the reversal selling in the US stock market was strengthened mainly in cyclical stocks such as steel, non-ferrous metals, and chemicals due to deep-rooted concerns about an economic recession. On the other hand, growth stocks such as IT and high-tech stocks remained strong, supporting the market as a whole, in response to the sharp drop in US Treasury yields. The latest CPI has heightened speculation that the Fed will stop raising interest rates as early as June.
connection : NY Dow sharp rebound Buyback to US regional bank stocks, coinbase +18% compared to the previous day

US April Consumer Price Index
Last night’s April US consumer price index (CPI) overall fell below 5% year-on-year growth for the first time in about two years. It was the slowest growth since April 2021, suggesting a continued slowdown in inflation.

【preliminary report】
US April CPI data release
・CPI (vs. previous month): This time +0.4% Last time +0.1% Forecast +0.3% ・CPI (year-on-year): This time +4.9% Last time +5.0% Forecast +5.0% ・Core (vs. previous month): This time +0.4% Last time +0.4% Forecast +0.3% ・Core (YoY): This time +5.5% Last time +5.6% Forecast +5.5%
— CoinPost Virtual currency media[WebX held in July](@coin_post) May 10, 2023
Year-on-year growth in core services, which the US FRB is said to be watching closely, improved to the lowest level since July last year. On the other hand, gasoline prices and rent rose, food prices remained flat for two months in a row, and overall prices remained at a high level, and the employment market also remained firm.

Headline CPI for April came in at 4.9% this morning, which continues the disinflationary trend. pic.twitter.com/e5MResLeKC
—Lyn Alden (@LynAldenContact) May 10, 2023
According to Bloomberg, Liz Young, head of investment strategy at SoFi, said: “It’s good to see that CPI is finally below 5%, but Core is still up 5.5%, so we think the worst is over. “It’s not enough to push the stock market to a level where it can be expected.”
Bank of the West chief economist Scott Anderson said, “The current CPI is reason for the Fed to seriously consider stopping rate hikes in June, but support a near-term rate cut,” according to Reuters. It’s nothing,” he commented.
The US Federal Open Market Committee (FOMC) decided last week to raise interest rates by 0.25 points, raising the target range for the Federal Funds (FF) interest rate to “5.00-5.25%”. In the interest rate futures market, the expectation that the FOMC will stop raising interest rates in June has risen to 93.9%, and the FOMC has begun to factor in the start of rate cuts since July. However, more data will need to be seen to be confident that the Fed is on a trajectory of sustained declining inflationary pressures, rather than on the “determined path”.
Economic data from this week onwards

May 11, 21:30 (Thursday): US April Wholesale Price Index/Core Index (PPI)
Monday, May 15, 21:30: May New York Fed Manufacturing Index
May 18, 21:30 (Thursday): Number of continuous recipients of unemployment insurance and number of new applications for unemployment insurance for the previous week
Friday, May 19, 24:00: Chairman Powell of the Federal Reserve Board remarks
May 23, 22:45 (Tuesday): US May Manufacturing Purchasing Managers Index (PMI, preliminary figures)
May 25, 3:00 (Thursday): Federal Open Market Committee (FOMC) Minutes
May 25, 21:30 (Thursday): U.S. January-March Quarterly GDP Personal Consumption (revised value)

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US stocks
The latest CPI data has been positive for IT and tech stocks, but the continued impasse in Congress over the US government’s debt ceiling is putting pressure on the stock market as a whole. US 1-year credit default swap spreads widened to a record high of 172 basis points. Five-year credit default swaps also widened to 73 basis points from the previous day’s 72 basis points, the highest since 2009.
IT Tech stocks compared to the previous day: NVIDIA +1.1%, c3.ai +1.5%, Tesla -0.3%, Microsoft +1.7%, Alphabet +4.1%, Amazon +3.3%, Apple +1%, Meta- 0.1%.
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Cryptocurrency-related stocks high

Coinbase｜$62.6 (+4%/+7.5%)
MicroStrategy | $315.1 (+3.8%/-3.6%)
Marathon Digital | $10.2 (+8.9%/-2.6%)

Marathon Digital Holdings, a Nasdaq-listed U.S. cryptocurrency mining company, has partnered with digital asset infrastructure company Zero Two to open a large-scale Bitcoin (BTC) mining facility in Abu Dhabi, United Arab Emirates (UAE), May 9. announced to launch.
connection : US mining company Marathon to launch large-scale facility in Abu Dhabi

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