Stock market today: Dow falls 700+ points after inflation cools less than anticipated | Feb 13, 2024

16 Feb 2024 (9 months ago)

January CPI Report

The January CPI report showed a hotter-than-expected inflation rate of 3.1% year-over-year, with a 0.4% increase month-over-month.
The core CPI, excluding food and energy, increased by 3.9% year-over-year and 0.4% month-over-month.
The food index rose by 0.4% in January, with food at home and food away from home both contributing to the increase.
The energy index fell by 0.9% over the month, primarily due to a decline in the gasoline index.
The shelter index continued to rise in January, increasing by 0.6% and contributing over two-thirds of the monthly all-items increase.

Economists discuss the implications of the inflation data for the Federal Reserve's monetary policy and the broader economic outlook.
Some experts believe the Fed may hold steady on interest rates despite the higher inflation reading, while others expect a rate cut in June if inflation continues to decline.
There is concern about the potential cost to the economy of doing too much or too little in terms of monetary policy, given the strength of the labor market.
The Fed's focus on achieving 2% inflation is noted, but there is discussion about the importance of balancing this goal with maintaining low unemployment.
The markets are pricing in higher interest rates for longer, but there is some skepticism about whether the Fed's message is being fully understood.

The recent launch of spot Bitcoin ETFs has attracted significant inflows and contributed to the rally in Bitcoin prices.
Other factors, such as the upcoming Bitcoin halving, are also driving demand for Bitcoin.
Bitcoin's price could continue to rise in the near to intermediate term, but it may face some turbulence due to macroeconomic factors.
Bitcoin has shown resilience despite negative macro variables such as a strong dollar, reduced rate cuts, and an upward movement in the long end of the curve.
Bitcoin's price closely tracks global M2 liquidity, and with the expectation of Fed rate cuts, its price is likely to rise.

The health of the regional banking sector is in question, with New York Community Bank's recent earnings report indicating losses in its commercial real estate portfolio.
Smaller banks account for 70% of all outstanding commercial real estate loans, making them vulnerable to potential trouble in the market.
The decline in office demand due to remote work and higher interest rates has resulted in a loss of value of around 50% for commercial office buildings.
This decline in value could lead to cash flow issues for landlords and difficulty refinancing mortgages when they come due.
Multifamily units are also facing challenges due to rising interest rates and a slowdown in rent growth, making it difficult to refinance loans when they come up for renewal.

Airbnb has built itself into the go-to choice for short and long-term homestays and experiences, with gross profit increasing by more than 20% year-over-year in 2023.
Airbnb was founded in 2007 by Brian Chesky and Joe Gebbia.
The company initially started as "Airbed and Breakfast.com" and rented out three air mattresses in their San Francisco loft.
In 2009, the website was shortened to "airbnb.com" and expanded to include a wide variety of properties.
Airbnb raised $585,000 in a seed round in 2009, valuing the company at $2.4 million.
By 2011, Airbnb reached unicorn status with a valuation of $1 billion.
Airbnb went public via initial public offering (IPO) on December 10, 2020, at $68 a share, raising $3.5 billion.
Airbnb acquired game planner "Gaest" in 2023.
Airbnb's CEO and co-founder, Brian Chesky, believes Airbnb is one of the more humanistic companies in technology and sees potential in developing practical applications for AI.

Futures are sliding down with Nasdaq futures off more than 300 points and the S&P 500 futures down more than 1% due to hotter-than-expected January CPI report.
The hotter-than-expected CPI print has impacted major averages and caused a sea of red across the major industry indices.
Market strategist Michael Ranking discusses the reaction to the CPI print and the impact on rate cut expectations.
The VIX, a measure of market volatility, is also moving higher, indicating increased uncertainty.
The market is experiencing a pullback after a strong rally, with the