Wake Up Wall Street (SPY) (QQQ): US CPI shoots down hawks as equities bounce

Here is what you need to know on Tuesday, April 12:

The CPI data from the US just released should at least provide some relief to markets. While broadly in line and a little better in the core number, investors have been conditioned to expect the worst now from inflation figures. These should at least provoke a rethinking on yields and Fed moves and may see a repricing of risk assets to the upside.

Already, we notice the Nasdaq has spiked nearly 1% on the number. Bond market positioning is now skewed short and we should see a race to cover which could lead to a nice squeeze lower for yields and squeeze higher for tech equities. The dollar is naturally not happy and has weakened on the release.

The Dollar Index is at 100.05 now. Oil is recovering some ground up to $98 now but news of Shanghai still seeing more covid infections may temper those gains. Bitcoin is at $40,400 and gold is $1,962 currently. US 10-year yields have just lost 10 bps on the back of the CPI print.

See forex today

European markets are mixed: Eurostoxx +0.8%, FTSE -0.5% and Dax -0.8%.

US futures are now all higher: Nasdaq +0.4%, Dow +0.1% and S&P +0.2%.