The probability of the Federal Reserve raising interest rates next week has risen to 90%, and the three major indexes of the US stock market have fallen throughout the week

The PPI in the United States rose to 5.4% year-on-year in August, while the CPI was 3.4% year-on-year. The core CPI increased by 0.3% month on month. Affected by data, the pricing of the interest rate swap market for the Fed's interest rate hike next week has risen to about 90%, and the three major US stock indices have fallen from their highs throughout the week. (Source: Jin Shi) AI interpretation: Inflation data rebounded across the board and core indicators remained high, directly shattering the market's illusion of a rapid decline in inflation. The expectation of the Federal Reserve raising interest rates has been strongly pushed to an extremely high level, completely reversing the previous expectation of loose monetary policy. The sustainability of the high interest rate environment has been further confirmed, which poses a heavy pressure on the valuation of US stocks. Market funds are accelerating their withdrawal from risky assets to cope with the liquidity tightening pressure brought about by tightening policies.