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CPI day keeps Fed hike odds at 50-50 as oil stays near $90
Markets are split 50-50 on a potential Fed rate hike next month after softer July jobs data, while Brent remains near $90 per barrel amid Iran and Red Sea tensions.
U.S. markets are turning to the latest consumer price report as traders calibrate Federal Reserve thinking and bond-market risk, with a separate producer price update and the Fed’s preferred PCE inflation gauge still to come later this month, according to Yahoo Finance. Ahead of the CPI data, markets were pricing the odds of a Fed rate hike next month at about 50-50, after last week’s softer July jobs figures reduced some expectations for tightening, Yahoo Finance added. In rates trading, decent demand at Tuesday’s 3-year Treasury auction helped ease pressure in the bond market, while 10-year notes were due to be auctioned later Wednesday, per the outlet. Oil stayed a key headwind for inflation watchers, as Brent crude was kept near $90 per barrel by uncertainty in Iran talks and additional attacks by Iran-backed Houthis in the Red Sea, while equities saw notable tech moves including CoreWeave’s 15% surge after it beat second-quarter revenue expectations and upgraded its demand forecast, and Foxconn’s reported 35% second-quarter profit increase.
Latest closeWTI crude $82.68 ▼0.6%|Brent $88.46 ▼0.5%