The release of inflation data sparked a wave of optimism in the financial markets. As a result, stocks surged at the opening bell, while Treasury yields experienced a significant decline. Both the two-year and 10-year yields saw a drop of approximately 14 basis points.
In response to this data, traders have adjusted their expectations and are now factoring in the possibility of two rate cuts by the Federal Reserve in 2024. The first rate cut is anticipated to take place in November, shortly after the presidential election. This optimistic outlook also had a positive impact on the crypto market, with investors showing renewed interest and leading to a notable recovery in the prices of cryptocurrencies.