ALERT: Federal Reserves Favorite Measure Of Inflation Just Hit A 3 Year High!
In a Nutshell
Core PCE inflation hit a 3-year high at 3.2% and overall PCE at 3.5%, fueling market volatility amid oil at $120/barrel, Japan yen intervention, and geopolitical tensions, yet stocks rallied by ignoring weak GDP (2% vs. 2.2% expected) and labor data. Meta dropped 9% post-earnings on high capex, Intel and SanDisk show massive valuation-fundamentals disconnects (Intel: $470B cap despite $3B annual losses; SanDisk: 3,000% 1-year gain with negative PE), warning of 90-99% downside risks and pump-and-dump precedents like Oaklow and MSTR. Apple earnings loom steadily (EPS $1.93, rev $108B); hold intentional positions, favor momentum like QCOM's 16.5% pop, but brace for corrections without Fed stimulus.
These notes were generated by AI and may contain inaccuracies.
Markets consolidating after 28% up. Meta exceeded earnings expectations but reported more capex spending than expected, spooking investors. Down 9%, peaked at 10-11% loss, $150-160 billion market cap loss. Meta had amazing 2025 performance with great run and consolidation. Overbought, possible recovery.
Nvidia seeing slight retracement, down 4%, earnings in two weeks.
Open Door big sell-off, down over 8% at one point, consolidating. If breaks $5 support, heads to $4 support.
Microsoft exceeded earnings but selling off.
Apple reports earnings after market close.
Intel pulling back after new all-time highs in extended hours due to Trump post on 10% ownership investment, up $30 billion. $470 billion market cap while losing $3 billion a year. Valuation does not align with fundamentals, production, or revenue.
Markets holding well overall despite headlines.
Japan intervened to defend yen. Yields at 27-year highs. Oil at $120 per barrel. Inflation rising.
PCE report: core PCE from 3% to 3.2% (3-year high). Overall PCE from 2.8% to 3.5% (3-year high). Markets rallied after report. Claim: factored in, in line with expectations. But higher inflation at all-time highs.
Labor markets weak, red flags everywhere. 30-year yields touched 5%, 11 basis points from 18-year highs. 10-year Treasury high, mortgages expensive.
Market ignores fundamental data. Oil expense passes to consumers at pump, reduces disposable income, negatively impacts economy.
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