FAITHFULLY
08-14

July CPI: no surprises, but the market still found something to chew on

Headline landed at 0.1% m/m, 3.4% y/y. Core came in at 0.2% m/m, 2.5% y/y — the slowest annual core print since February. Shelter and food each added 0.1%; energy was the drag, down on the month even as gasoline is still running +24.6% y/y.

The "in-line" read is actually the story: it's the second straight month of cooling core inflation, which is why traders leaned harder into a September hold rather than a hike. Future now price meaningfully lower hike odds than a week ago — the fourth straight downward revision.

Equities shrugged it off calmly (S&P +0.26%, Nasdaq +0.54%), but gold's +2% move to $4,471 says someone's still hedging. That's the tension: a "boring" CPI print that both confirms disinflation *and* keeps a safe-haven bid alive.

So — is gold pricing in a hold that never comes, or is it front-running something the equity market hasn't priced yet?

CPI Rises to 3.7% — Will the Tech Selloff Deepen?
QQQ fell 1.97% and the S&P 500 dropped 1.11% after September CPI rose 3.7% year over year, above expectations. Higher-rate fears and AI-sector deleveraging hit QQQ particularly hard due to its tech-heavy composition and lack of bank exposure. Bulls see resilient earnings as a cushion, while bears warn that persistent inflation threatens rate cuts and tech valuations. Should investors hold QQQ, rotate into value sectors, or reduce exposure?
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Comments

  • CharlesBaker
    08-14
    CharlesBaker
    Real yields still matter more here. Gold looks like insurance, not a bad hold call — equities maybe just too chill?
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