Core CPI, which excludes food and energy, increased 3.0% YoY (est. 3.1%) and 0.2% MoM (est. 0.3%), showing steady inflation. Note: BLS collected September CPI data before the lapse in appropriations.
Market Reaction
- S&P 500 E-mini futures rose 0.8%, Nasdaq 100 futures climbed 1%, and Dow futures increased 0.5% in premarket trading.
- US Treasury yields fell after the CPI report: 2-year yield down 3 bps at 3.453%, and 10-year yield slightly down at 3.985%.
- The US Dollar Index dropped 0.2% to 98.78 following the data.
- Emerging-market stocks and foreign exchange gauges rose after the CPI release.
- Short-term US interest-rate futures climbed as traders increased bets on two more Federal Reserve rate cuts this year.
Overall, September CPI data suggests easing inflation pressure, boosting markets and raising expectations for Fed policy easing.
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