Thoughts on the latest CPI print and rate hike implications

That last CPI print really caught my eye. While headline numbers showed a bit of a deceleration, the stickiness in core inflation, particularly services, is still concerning. It feels like the market's been trying to price in a Fed pivot for months now, but every time we get a data point like this, it just pushes that expectation further out. I'm starting to think the 'higher for longer' narrative has more legs than many bulls want to admit, at least for the short to medium term. The fed fund futures still show some cuts priced in for later next year, but I'm questioning that conviction now.

From a positioning standpoint, this has me re-evaluating my watchlist. I've been trimming some of the more rate-sensitive growth names and looking harder at sectors that might benefit from a sustained inflationary environment or companies with strong pricing power. Also keeping a close eye on the bond market; the yield curve inversion has been a pretty reliable signal historically, and if the Fed keeps pushing rates up, that inversion could deepen further. Not making any drastic moves yet, but definitely shifting my focus towards more defensive plays and solid balance sheets. Still watching the yen, with $Y trading around 847.79, it's interesting to see if BOJ intervention becomes a real possibility down the line given global rate differentials.