Summary
Stocks fell while cryptocurrencies had mixed performance as consumer price data showed higher inflation than expected. Bitcoin briefly passed $50,000, with analysts optimistic about its future. The Federal Reserve may not cut interest rates soon due to the inflation data. Fed Chair Powell is closely monitoring inflation expectations.
Key Points
1. Stocks slipped and cryptocurrencies were mixed Tuesday morning after the latest consumer price data showed inflation is more persistent than economists had bargained for.
2. The S&P 500 and Nasdaq Composite indexes had a rocky start Tuesday morning, losing 1.4% and 1.7%, respectively. Bitcoin lost around 0.4% while Ether was up around 4% at the time of publication.
3. The latest inflation print could spell trouble for investors banking on an interest rate cut from the Federal Reserve in the coming months. Fed Funds futures put the likelihood of a March rate decrease at just 9%, and odds of a cut coming in May currently sit at 37%.