Bitcoin and US equities staged a relief bounce on Thursday as fresh inflation data offered a dose of calm. The Personal Consumption Expenditures (PCE) price index matched year-on-year forecasts and recorded its first monthly decline in six years, giving markets a reason to cheer after weeks of volatility.
PCE Data Breaks the Trend
The PCE inflation report landed right on expectations for the annual figure. More striking was the monthly drop — the first in half a decade. That's a big deal for a market that's been on edge about sticky inflation. The data suggests price pressures may finally be easing, even if the path ahead remains bumpy.
South Korea Chip Rout Eases
Overseas, the rout in South Korean semiconductor stocks began to unwind. That sector had been hammered in recent weeks on oversupply fears and weak demand signals. The easing helped lift sentiment across global tech markets, adding fuel to the broader bounce.
Bitcoin and Equities Recover
Bitcoin climbed alongside US stocks, with both asset classes shaking off a stretch of selling. The S&P 500 and Nasdaq both rose, while bitcoin pushed back above key levels. The timing of the PCE release — right as markets were looking for a catalyst — helped turn the tide, at least for the day.
The relief rally gave traders a break, but the underlying concerns haven't vanished. The PCE data provided a welcome reprieve, but the semiconductor rout and inflation concerns are far from over.
