The inflation rate for the U.S rose higher than expected by about 8.3% but eased from the previous read of about 8.5%. Stock indexes fell sharply to the data as the Nasdaq Futures contract dropped the most with about minus 3.2%.

The odds for an interest rate hike of 75bps from the Fed are likely higher now with speculations about a 100bps hike to tame the soaring inflation, keeping the aggressive monetary approach in place for pressured equities and commodities while the dollar surged.

Inflation sped up for natural gas with 33% vs 30.5% and electricity with a 15.8% rise. There are some smaller increases for energy, gasoline, and fuel oil. The food sector rose by about 11.5%. The monthly data increased by about 0.1%, higher than the expected drop of minus 0.1%.

The E-mini S&P 500 found selling and long liquidations around the Quarter’s upper value extreme to the dot, testing the VWAP for support for the moment. The market was trending higher for about four consecutive sessions as of inflation peak hopes.

The macro perspective probably leans on the bearish side with the data and the likely 75bps rate hike which pressures the CME: ES Futures contract. Therefore rotations towards the lower extreme of the Quarter’s VWAP view or even lower are probable.

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CME: ES with selling around the upper-value extreme area of the Quarter.

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