Market Reactions to CPI Report

Author: Elior Manier

Date: 13 February 2026

Overview

The markets reacted positively to a recent Consumer Price Index (CPI) report, which showed inflation cooling to its lowest level in nearly five years. The year-over-year inflation rate is reported at 2.4%, slightly above the expected 2.3%.

Key Highlights

• The CPI report indicates a significant easing of inflation pressures, which has been a primary concern for the Federal Reserve.
• Despite some components of the data remaining elevated, the overall trend suggests progress, leading to speculation about potential interest rate cuts.
• Metals, bonds, and cryptocurrencies experienced upward movements following the report, with Treasuries seeing notable inflows.

Market Dynamics

While commodities and bonds rallied, the stock markets faced challenges, particularly due to concerns over the impact of artificial intelligence on various sectors. The report led to a mixed response in equities, with traders initially attempting a rebound but facing ongoing volatility.

Sector Performance

Several sectors, including technology, real estate, and entertainment, have been under pressure, prompting discussions about the sustainability of current market valuations. The high Price-to-Earnings (P/E) ratios observed are reminiscent of the late 1990s, raising concerns about potential market corrections if a regime change occurs.

Commodities Update

Gold has reclaimed the $5,000 mark, while silver is attempting to break through its resistance level of $84. Both metals are being closely monitored for future price movements.

Cryptocurrency Trends

In the cryptocurrency market, Solana is leading the charge, while Bitcoin is approaching the critical $70,000 level, which could trigger further buying interest if surpassed.

Conclusion

The CPI report has set the stage for potential shifts in monetary policy, with all eyes now on the Federal Open Market Committee's (FOMC) communications. As the market digests this information, traders are advised to remain vigilant and adaptable to changing conditions.

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