Nasdaq 100 futures rally 4% on weaker than estimated US CPI
Following a week of negative sentiment and the market almost giving up on its ‘Fed pivot’ trade and the ‘Xi pivot’ on Covid policy weakening due to rising cases in China, the market was at edge hoping for good inflation news out of the US. The newly releases US CPI report for October showed that headline inflation m/m was 0.4% vs est. 0.6% and CPI core m/m (less energy and food) was 0.3% vs est. 0.5%. The reaction is strong to the upside with Nasdaq 100 futures rallying 4.3% as the sector has the highest sensitivity to the Fed’s terminal rate and interest rate trajectory.
1-hour bars over 10 sessions on Nasdaq 100 futures