Wall Street’s Secret Love Affair with Inflation

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Oh, look at that! The Dow Jones decided to wake up and have a little party on Thursday, rising over 170 points. Meanwhile, Treasury yields took a nap and dropped after the latest consumer inflation data came in hot. Because who doesn’t love a good inflation scandal, right? 😅

  • The Dow Jones gave us 170 points, and S&P 500 added a cheeky 0.3%. (Very modest, but hey, it’s something.)
  • Wall Street’s enthusiasm didn’t seem to care that the CPI data for August was a bit *spicy* – hotter than expected, but who’s counting?
  • Everyone’s pretty sure the CPI numbers won’t mess with the grand plan of a Federal Reserve interest rate cut. Because who wouldn’t want that juicy rate cut? 💸

So, on September 11th, the markets stayed alive, and the Dow rose more than 170 points (which is… something, I guess?). The CPI data showed consumer prices grew by 0.4% in August. But, you know, no biggie. Wall Street still strutted around with some swagger despite the inflation bombshell. 😎

Investors are, of course, betting that the Federal Reserve will finally get the memo and drop interest rates. This isn’t their first time hoping for this, but who’s counting? S&P 500 and Nasdaq also had a little fun, each climbing 0.3% – making us all feel like maybe the economy isn’t *that* bad after all. But, hey, we’re all just pretending to understand, right? 😂

Bitcoin also decided it was in a good mood today and joined the party. Classic Bitcoin. 🤑

Meanwhile, the 10-year U.S. Treasury yield took a little dip, falling 4% to 4.002%. The 30-year yield barely budged, hanging out at 4.661%. Very chill, like that person who brings the vibe down at parties.

Let’s Talk CPI and Jobless Claims (Spicy Edition)

So, the U.S. Bureau of Labor Statistics dropped some fresh inflation numbers on Thursday. Turns out, the CPI for August went up by 0.4%. That’s higher than the 0.3% folks were expecting, and way more than the 0.2% from July. We love a plot twist. 📉

CPI for all items rises 0.4% in August; shelter and food up #CPI #BLSdata

– BLS-Labor Statistics (@BLS_gov) September 11, 2025

But wait for it… the CPI hit the annual inflation target of 0.29%. Coincidence? Probably not. Everyone loves a good surprise twist. 💥

Core CPI, which leaves out the fun stuff like food and energy, stood at 0.3% in August. That number also checked in at 3.1% annually. If you’re into numbers that make you feel important, this is the one. Economists predicted these numbers, so no one’s crying. Investors are high-fiving themselves because, you know, Core CPI is the Fed’s favorite number. 🏅

And just for fun, the Labor Department decided to drop the jobless claims report. It was… a little off-script. Jobless claims shot up to 263,000, higher than the expected 235,000. So, more people looking for jobs. Aww, poor them. 😬

But let’s not get sad about it. Despite all this CPI drama, investors are still convinced the Federal Reserve will lower interest rates next week. So let’s all just keep our fingers crossed that they’re right. 🙏

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2025-09-11 17:11