- Stocks and US share futures fell as hot US inflation data raised expectations for more aggressive Fed monetary tightening, which could lead to a recession.
- An Asian share index fell as a result of decreases in China and mixed performance in Japan and Hong Kong. Contracts for the S&P 500 and the Nasdaq 100 fell approximately 0.5%. A tumultuous US day finished with small losses, probably due to concern about whether the 9.1% consumer-price estimate represents the peak.
- Traders are now expecting the Fed to raise interest rates by a historic 1ppt later this month. Fed's Bostic stated that everything is on the table to address price pressures.
- Treasury 2-yr yields, which are susceptible to Fed decisions, rose higher, while longer-maturity rates remained stable. The inversion between 2-yr and 10-yr rates – a potential recession predictor – is the most pronounced since 2000.
- The dollar rose, while the euro slipped back toward $1 after briefly falling below it on Wednesday. Oil was trading around $96 per barrel. Bitcoin has risen above $20,000.
- Singapore's currency rose as a result of an unanticipated tightening of monetary policy, part of a global wave of measures to reduce the cost of living. Australian bond yields rose in response to a solid jobs report, bolstering the case for additional increases in borrowing costs.
