After the US CPI was released in January, stock index futures rose, and traders significantly increased their bets on the Federal Reserve cutting interest rates.

【Blockchain Rhythm】After the US December CPI data was released on January 13, the market immediately responded. Stock index futures rose across the board, with Dow futures up 0.14%, the S&P 500 index up 0.2%, and Nasdaq futures also climbing 0.23%. The reasoning behind these movements is actually quite straightforward—once the inflation data was announced, US short-term interest rate futures plummeted and surged significantly, prompting traders to immediately bet that the Federal Reserve would continue to cut interest rates. This shift in expectations was almost instantaneous, because for financial markets, the possibility of rate cuts means more liquidity, which is positive for risk assets including cryptocurrencies. The market’s reaction speed has never disappointed.