US consumer inflation slows sending stocks and crypto higher

US inflation fell to 3.4% in April, in line with economist's expectations while Core CPI came at 3.6% compared to 3.8% the previous month.

Retail sales in April were flat compared to 0.4% expected with underlying measures of the report also showing spending has softened. Spending on food and energy missed expectations while the sales group which excludes building materials and motor parts also declined 0.3%.

The new data send US stock indexes and crypto assets higher as traders in futures markets added to bets that the FED will cut interest rates twice this year.

US wholesale inflation rises in April as FED Chair gives neutral remarks

The US producer price index increased 0.5% last month compared to 0.3% expected by analysts. The index indicates wholesale inflation and just had its highest annualised gain in 12 months. US traders initially interpreted the PPI report as a sign that the FED has more work to do to combat price growth. FED chairman Jerome Powell, speaking at an event in Amsterdam, mentioned that the US economy had been performing very well lately but there's lack of progress in bringing inflation down. Powell said he expects inflation to move back down and reiterated that the probability of more rate hikes is very small.

Bitcoin rebounds and US stocks are mixed as investors await inflation data

Bitcoin price opened the week higher and is currently consolidating under $63,000. Ethereum also started the session higher but is currently flat at $2,932.

US stocks are also mixed for the Monday session with S&P 500 currently flat for the day while the Nasdaq Composite is trading higher by 0.15%.

Investors are looking ahead to wholesale and consumer inflation data coming out on Tuesday and Wednesday, respectively. CPI number is expected at 3.4% compared to 3.5% last month.

Index	Daily Change
Bitcoin	1.93%
S&P 500	0.03%
Nasdaq	0.15%