US CPI data exceeded expectations, and Polymarket predicts the probability of a December rate hike has risen to 87%.

US CPI data came in higher than expected, and Polymarket data showed that the probability of a 25 basis point rate hike by the Federal Reserve in December rose to 87%. AI Interpretation: The unexpectedly strong inflation data shattered market optimism regarding interest rate cuts. Strong price pressures forced the Federal Reserve to maintain a tight stance to curb the rebound in inflation. This outcome completely reversed expectations of monetary policy easing, and market funds quickly converged on pricing in interest rate hikes. The high-interest-rate environment will persist for a longer period, directly suppressing risk assets. The Federal Reserve has lost any policy space to shift to a dovish stance until its anti-inflation mission is accomplished.