investingLive Americas market news wrap: Big drop in US CPI sparks confusion

The recent release of the US Consumer Price Index (CPI) showed a year-on-year figure of 2.7%, significantly below the expected 3.1%. This substantial drop initially resulted in USD selling, but skepticism soon crept in, causing limited movement in the forex market. Notably, the BLS's choice to treat some items as zeros has had an impact, marking the first real data since the government shutdown. Additionally, the two-year yields remained virtually unchanged following this report. Moreover, the European Central Bank (ECB) maintained interest rates at 2.00% while raising the inflation forecast for 2026. Fed's Goolsbee viewed the inflation data favorably. Markets are reacting to various macroeconomic data, with the British pound experiencing a temporary surge due to the Bank of England's (BOE) expected interest rate cut, though it subsequently gave back most of the gains. Gold prices saw a round trip reaching $4371 before falling back to $4331. In the credit market, tech firms reported strong earnings, contributing to a partial recovery in the Nasdaq index. Particularly, Micron’s revenue beat has sparked positive sentiment. Overall, the markets remain turbulent, with investors seeking attractive opportunities.