🧵 Macro Monday: Inflation Cools 1) Inflation cools, markets heat up 🔥 ➤ CPI +0.2% MoM, 3.0% YoY — below expectations ➤ S&P, Dow, Nasdaq close at new highs; 10Y yield dips ➤ Investors now pricing 2 more Fed cuts (Oct & Dec) ➤ Brent >$65 after new U.S. sanctions on Russian producers

2) Gold Loses Momentum ➤ Snaps 9-week winning streak as investors take profit ➤ Gold futures -4% W/W to ~$4,100 after ETF outflows ➤ Broader participation = higher volatility, but trend still intact

3) Retail Power ➤ Retail now drives ~50% of total U.S. equity volume via off-exchange venues ➤ Quantum + AI darlings that ran 1,000%+ last year cool off ➤ Crypto ETFs pull in $47B YTD — retail risk appetite still strong

4) U.S. Macro ➤ Cooler CPI eases stagflation fears, reinforces “soft landing” narrative ➤ Fed seen prioritizing labor market stability ➤ October data releases could be delayed by shutdown

5) Geopolitics ➤ U.S.–Canada: Trade talks paused after Ontario ad spat; to resume once ad pulled Monday ➤ U.S.–China: Tensions ease ahead of Trump–Xi summit in North Korea ➤ Trump seeks soybean/fentanyl concessions; Xi wants chip + Taiwan assurances

6) Crypto & Digital Assets ➤ JPMorgan to let institutions use BTC & ETH as collateral by year-end ➤ S&P × Chainlink to publish on-chain stablecoin risk scores ➤ Japan launches first yen-backed stablecoin (JPYC), fully convertible + bond-backed

7) Summary ➤ Inflation cools → markets rally, yields ease ➤ Gold correction meets oil strength ➤ Retail + crypto inflows keep risk alive ➤ Trade diplomacy stabilizes global tone

8) Stay tuned for next week's Macro Monday! Can cooling inflation keep the bull run burning? Subscribe for free to the entire newsletter below!