Inflation rises less than expected, sparking market surge

From Stocktwits: 2025-03-12 09:24:15

In February, core inflation rose by 0.2%, marking a 3.1% increase over the last 12 months, the smallest since April 2021. U.S. consumer prices also rose less than expected, with the CPI increasing by 0.2% month-on-month and 2.8% annually. The BLS reported a 0.3% rise in shelter index, nearly half of the overall monthly increase. Energy, food, and airline fares also experienced fluctuations. Futures surged post-inflation data release, with SPY and QQQ rising over 1% each. Traders anticipate a status quo policy from the Fed in March, despite a 25 basis point rate cut projected for June 2025. Retail sentiment on Stocktwits remains bearish for SPY and QQQ, with users expressing differing views on the inflation numbers and potential impacts. The upcoming Fed policy decision is eagerly awaited for its economic implications.



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