WS #15903
US CPI data came in higher than expected, reigniting fears that the Federal Reserve may be forced to hike rates or hold them higher for longer. This has triggered a sharp rise in US Treasury yields, which is the primary driver of the current equity selloff, particularly in growth and technology sectors. The market is repricing the probability of a dovish Fed pivot, shifting the macro environment from supportive liquidity to restrictive pressure.
Macro Inflation and Fed Policy
US CPI data came in higher than expected, reigniting fears that the Federal Reserve may be forced to hike rates or hold them higher for longer. This has triggered a sharp rise in US Treasury yields, which is the primary driver of the current equity selloff, particularly in growth and technology sectors. The market is repricing the probability of a dovish Fed pivot, shifting the macro environment from supportive liquidity to restrictive pressure.