CPI blows out at 3.1% with expectations for a 2.9% print. Stock markets drop 1%. USD dollar and oil are bid.

As noted with this post prior to the CPI release for January 2024, the market, which is mostly Wall Street and the investment banks who are screaming for rate cuts for 2024, so they can free up the fixed income assets and pour then back into speculation.  Called for a 2.9% print, which in this gist for game, got it wrong.  Stocks sold off in earnest.  But, for the consumer on the street wondering why their paychecks are eroding before the next paycheck, will be somewhat relieved that the CPI, which is not the best metric in the world, with its plethora of revisions for the February 13th print, showed that, despite 'some' investment banks calling for large rate cuts in 2024, rates have to stay higher for longer.  And hopefully stabilize rents, insurance costs and food prices, which was the main driver for the CPI spike.  Yet, it is these expeciations of rate cuts that defy logic as PPIs are showing operational costs and prices going upwards, thus inflation is going upward.  Simple terms, costs are being past on to the consumer.

Overall, the stock market is looking panicky as oil, a hidden inflation driver on everything, is bid at $77.

Adjustments for a stagflation scenario would be prudent. 

S&P 500 futures fell over 1.25%, dropping from 5064 to 4973.  Below the psychological 5000.  Supports are at 4965 and 4940, 4866.  Please refer to the above chart.