Overview

• Core consumer prices rose 0.3% in August, exceeding Wall Street's 0.2% estimate.
• Markets now predict an 85% chance of a 25 basis-point rate cut at the Fed's next meeting.
• The probability of a 50 basis-point cut has dropped significantly, with only a 15% chance.
• The latest CPI report showed annual headline inflation at 2.5%, the lowest since early 2021.
• Investors are closely watching upcoming jobless claims and retail sales data for further economic indicators.