Banks are getting hit hard, CPI figures hotter than expected. Pressure for rate hike is back.

PawsAndProfits
10-14 23:06

Disclaimer: Nothing I say or post should be considered financial advice. Please do your own due diligence before making any investment decisions.‌

So some major financial institutions in the US kicked off the final earnings season for 2026, and it did not start well. $Wells Fargo(WFC)$ $Bank of America(BAC)$ $Morgan Stanley(MS)$ all got hit hard after earnings announcement, fueling it further downside in the financial sector. Coupled with CPI Y/Y reported @ 3.7%, compared to estimate of 3.6%, further fueling the fed to raise interest rate further to curb hotter than expected inflation, which is definitely not optimistic for the whole market outlook.

The instrinsic bulls of majority stocks that did a great run is definitely not broken yet. However, will take a precautionary measure for short to mid term, and position myself with some downside bets to balance off the risk. Will look for opportunities in commodities to diversify my risk as well.[Thinking]

@PawsAndProfits - Specialist in combining FA and TA for Options selling and Swing trading.[666]

PPI Surges 1.3% MoM — Can the U.S. Equity Rotation Hold?
QQQ slipped 0.13% while SPY gained 0.28% as hotter producer inflation pushed capital from AI-heavy tech into financials and consumer stocks. September PPI rose 1.3% month over month, more than double expectations, while energy lifted annual wholesale inflation to 6.3%. Bulls welcome broader market leadership; bears fear margin pressure and delayed rate cuts. Should investors favor SPY value sectors, hold QQQ, or wait for inflation expectations to reset?
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