The U.S. economy is sending shockwaves through Wall Street as the August Consumer Price Index (CPI) surged 0.4%, outpacing the forecasted 0.3%. The hotter-than-expected inflation data signals that price pressures are far from easing, and markets are bracing for the Federal Reserve's next move.
But the surprises don’t end there. Weekly jobless claims skyrocketed, painting a stark picture of a cooling labor market. This unusual mix—stubborn inflation paired with rising unemployment—has traders on edge, fueling intense speculation of an economic slowdown.
The immediate reaction? Bitcoin slipped 0.5%, signaling broader risk-off sentiment as equities waver and Treasury yields bounce. Investors are scrambling for safe havens while tech stocks and crypto remain under pressure.
Analysts warn that this combination of sticky inflation and weakening employment could force the Fed into a high-stakes balancing act. “We’re entering a dangerous zone for markets,” said one Wall Street strategist. “This is the kind of data that rattles both bulls and bears.”
