CPI Falls Below Expectations, NVIDIA Leads Gains, ETH Rises Nearly 50% in a Week
U.S. Stocks Rise on Trade Agreement Benefits and Slowing Inflation Data
Benefiting from the U.S.-China tariff agreement and slowing inflation data, U.S. stocks rose broadly on Tuesday (5/13). The U.S. Department of Commerce officially rescinded the “AI diffusion rules” from the Biden era on Tuesday, with AI giant NVIDIA leading the gains, rising over 3%. Following a significant upgrade on Pectra, ETH continued to climb, with a 7-day increase of nearly 50%, although ETH/BTC remains at a low of 0.0257.
CPI Lower Than Expected; Fed May Not Cut Rates Until September
Due to moderate prices for clothing and new cars, the inflation rate in the U.S. for April rose less than expected, indicating that companies have not yet been eager to pass the increased tariff costs onto consumers. Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that the Consumer Price Index (CPI), excluding the more volatile food and energy categories (core CPI), increased by 0.2% from March, while the annual CPI growth rate dropped to 2.3%, marking a new low since February 2021, demonstrating a further easing of inflationary pressures.
The CPI report highlighted two potential dynamics in the economy. The categories of goods affected by higher tariffs, including new cars and clothing, did not experience the price increases currently expected by economists. This suggests that importers and retailers are absorbing some of the additional costs, as the imported products being sold now arrived before the tariffs (especially those targeting China) took effect.
Additionally, some weakness in service categories such as travel and entertainment indicates that consumers are cutting back on leisure and other discretionary spending.
According to the CME FedWatch Index, investors currently expect the Federal Reserve to delay any further rate cuts until September, with only two rate cuts remaining for this year. Fed Chair ### Powell reiterated at last week’s press conference that, given the current low unemployment rate and stable demand, the Fed is willing to maintain rates until they have a better understanding of the economic direction, as “the cost of waiting is quite low.”
ETH Rises Nearly Fifty Percent in a Week
According to a post by Lookonchain, a London-based asset management company, Abraxas Capital purchased nearly $500 million worth of Ethereum in less than a week.
Compared to Bitcoin’s gains in recent months, Ethereum’s performance has been underwhelming. Last week, following a significant upgrade on Pectra, ETH continued to rise, with a 7-day increase of nearly 50%, while Bitcoin only rose by 8% during the same period. However, ETH/BTC remains at a low of 0.0257.
(From laughingstock to belief: “E-Guard” becomes a new meme in the Ethereum community)
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