U.S. September Core Inflation Exceeds Expectations, Jobless Claims Rise
First-time jobless claims rose to 258,000, much higher than the 230,000 expected by the market, raising concerns about the job market situation.
On October 10, the U.S. released its Consumer Price Index (CPI) report for September. The data showed that inflation fell to 2.4% in September from 2.5% in August, slightly above market expectations of 2.3%. On a year-over-year basis, inflation increased by 0.2%, compared to market expectations of 0.1%.
Meanwhile, core inflation rose to 3.3% in September from 3.2% in August, beating market expectations of a flat rate. Core inflation increased by 0.3% on a year-over-year basis.
On the same day, investors also focused on the report on Initial Jobless Claims. The report showed that a total of 258,000 Americans filed for jobless benefits over the past week, well above the 230,000 expected by the market.
Following these data releases, U.S. Treasury yields eased. 2-year Treasury yields fell below 4.00%, while 10-year Treasury yields fell back to near 4.05%. Notably, Treasury yields had previously begun to rebound from recent lows.
The US Dollar Index retreated from its intraday highs as investors focused more on the disappointing Initial Jobless Claims data while ignoring the rise in core inflation. The dollar index is expected to remain volatile as investors digest the data.
Gold prices stabilized around $2,620. Gold investors are closely monitoring the dollar's movement and changes in Treasury yields. The S&P 500 tested its intraday lows in trading on the back of rising inflation and a weak job market.
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