Expectations for the next Fed rate cut get pushed back after hot inflation report

The latest inflation report has led to a shift in expectations for the next Fed rate cut, with futures markets now indicating no cut until at least December, potentially impacting interest rate-sensitive assets and the broader market. This development may lead to a strengthening of the US dollar and a decrease in the value of assets that benefit from low interest rates. The change in rate cut expectations could also influence the yield curve and affect the attractiveness of fixed-income investments.