Hotter-than-Expected CPI Raises Fed Rate Hike Odds Amid GE Vernova Volatility
U.S. inflation data came in higher than economists anticipated, with the Consumer Price Index (CPI) rising 0.4% year-over-year and Core CPI increasing by 0.3%. This hot data has caused a surge in the 10-year Treasury yield to 5% and significantly increased market expectations for Federal Reserve rate hikes in December, including a growing probability of a 50-basis-point increase. In equity markets, GE Vernova (GEV) saw shares tumble following news that SoftBank is restructuring its power equipment procurement strategy for U.S. AI data centers. While SoftBank reported a $3.7 billion loss related to non-refundable advance payments and revised contracts for an Ohio project involving GE Vernova turbines, analysts suggest the sell-off may be an overreaction given the company's massive backlog through 2029-2030.
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Topics: Analyst Downgrade CPI Data Federal Reserve Interest Rates Stock Market Volatility
Part of the story Hotter-than-Expected CPI Raises Fed Rate Hike Odds Amid GE Vernova Volatility (3 articles)