At the same time, the one-year inflation expectation (3.3%) is significantly higher than market expectations and the previous value of 2.8%; the 5-10 year inflation expectation has risen to 3.3%, which is not only significantly higher than market expectations and the previous value of 3.0%, but also a new high since 2008.
Overall, the strong momentum of the US economy supported the Federal Reserve's upward revision of the economic outlook at the previous FOMC meeting, and market expectations for interest rate cuts suddenly cooled.
This Wednesday, the United States will also release December's CPI, PPI and retail sales, which will be released on the evening of the 15th. As the latest inflation data before the January 2025 interest rate meeting, the amazon data overall inflation changes in the United States in 2024 will come to light. The market currently expects that the month-on-month growth rate of CPI in December will remain at 0.3%, and the year-on-year growth rate will rise to 2.9% from the previous value of 2.7%; the year-on-year growth rate of core CPI inflation is expected to remain at 3.3%, and the month-on-month growth rate will slow down to 0.2%.
If the data is in line with expectations, it will provide important support for the Fed's decision not to cut interest rates.
So before the market opened on Monday, several U.S. stock market indexes continued to show a significant decline, and technology giants with valuations at historical highs could not hold up. This situation is bound to cause further concerns in the market.
On January 8, the 10-year U.S. Treasury bond yield broke through the 4.7% mark in one fell swoop, and the market began to discuss whether it would soar above 5%.
The last time the 10-year U.S. Treasury yield was 5% was in late October 2023, but at that time, U.S. economic data was positive and inflation levels were also on a downward trend.