Hotter US Inflation Reprices Global Markets

Overview

• Tuesday’s US consumer price index rose 0.4% month‑to‑month and core CPI excluding food and energy rose 0.3%, both above forecasts and published with a 2025 data gap that limits some annual comparisons.
• Markets quickly priced a more restrictive Fed path, with CME quotes adding an extra hike and the dollar index climbing to its strongest level since April 2025 as Treasury yield expectations moved higher.
• US equities were mixed but tech led gains, while bitcoin fell to about $73.6k as net outflows from spot Bitcoin ETFs and higher rate expectations pressured crypto.
• After‑hours reporting of an internal probe into Nvidia’s CEO, Jensen Huang, produced an 8% drop in the stock and knocked Asian bourses and US futures lower, raising worry that the shock could spread through AI‑linked names.
• In Brazil, a government plan targeting roughly R$50–60 billion in 2027 cuts trimmed local risk premia and lifted the real and the Ibovespa, but investors say durable relief depends on concrete execution and the choice of the finance minister.