To The Moon

The U.S. CPI data for January supported the hawkish argument of Fed officials that they need to continue raising interest rates and maintain a high interest rate policy for a period of time.

U.S. inflation turned higher in early 2023 as higher housing, natural gas and fuel prices took a toll on consumers, the Labor Department reported.

At one point earlier this week, the market was 100% pricing in at least one rate cut this year - betting on interest rates at the time showed the Fed would be at least 25 basis points off its mid-year peak by the end of the year.

But that bet has quickly narrowed to about 13 basis points following the release of the CPI data on Tuesday, well short of the bare minimum of a rate cut.

Main U.S.equity indexes off lows; $DJIA(.DJI)$ down, $NASDAQ(.IXIC)$ up, the $Cboe Volatility Index(VIX)$  dropped sharply and the$USD Index(USDindex.FOREX)$ progressed little. $Gold - main 2304(GCmain)$ edges up; $Light Crude Oil - main 2303(CLmain)$ declines; bitcoin gains.

Volatility has declined since last October as investors look toward the eventual end of the Fed's interest rate hikes.

In fact, at the end of January, the VIX, a measure of implied stock market volatility, had fallen by 40% from its recent highs in Q4 of last year. As the VIX has been moving lower, equity and bond prices have moved higher.

Douglas Beath, global investment strategist at the Wells Fargo Investment Institute (WFII), believes today's VIX reflects a "cautiously optimistic outlook" on the part of capital markets.

"Our view is that equity markets will continue to snap back from double-digit losses experienced in 2022."

What's more, $NASDAQ(.IXIC)$ stood on very important technical level(MA250, and MA850), 

Under the good news that the inflation data continued to decline, the risk appetite of the U.S. stock market has picked up, and the valuation has increased significantly. its inversion.

It is worth mentioning that large technology stocks and chip stocks have recently led the market to rise.

Inside which，$NASDAQ(.IXIC)$ related ETFs see decent rise in YTD 2023: $NASDAQ 100(NDX)$ +15.91%,$Invesco QQQ Trust(QQQ)$+15.98%, $Nasdaq100 Bull 3X ETF(TQQQ)$+48.99%, $ProShares Ultra QQQ(QLD)$+32.42%.

Same here to semiconductor ETFs: $Philadelphia Semiconductor Index(SOX)$ rise 24.82%, $Semiconductor Bull 3X Shares(SOXL)$ rise 85.15% ,$VanEck Vectors Semiconductor ETF(SMH)$ rise 25.64%, $STMicroelectronics NV(STM)$ rise 40%, $iShares Semiconductor ETF(SOXX)$ rise 25.18% in 2023.

Tech-stocks are back:

What tech stocks are you following? Which sectors you believe are bullish?