It is a rally of everything after the lack of CPI – Market Reactions

[Ben Graham]

Markets just received a reassuring report after a largely expected CPI release.

Inflation has been in the Fed's sights for a while now, being the only data preventing cuts amid not-so-shocking Non-Farm Payrolls growth and easing Retail Sales, and it just cooled to the lowest print in close to 5 years. The y/y print is at 2.4% (+0.2% vs 0.3$ exp).

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Headline CPI in the past 10 Years – Source: Trading Economics

Read More:

• Breaking News: US CPI at 0.2% – 2.4% Y/Y (vs 0.3% exp) – a miss!
• US inflation slows, Fed may cut rates more than the market prices in

Some parts of the data, essential to the Fed, remain hot (like the SuperCore), but overall this is evident progress – with the pricing of a third cut in 2026 now well in pace, all eyes will turn to the FOMC's communication from now on.

Metals, Bonds, and Cryptocurrencies are all dancing higher after the report.

Treasuries are, by the way, the asset class driving the most inflows throughout the past week, with the upward move now grabbing quite some momentum.

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US 10 Year Treasury Bond (CFD) – February 13, 2026 – Source: TradingView

The black sheep of this morning's action are the Stock Markets, going through some nasty dynamics with AI creative destruction dragging sentiment in equities yet again today.

After a rough open, traders attempted a rebound but Indexes aren't out of the waters yet.

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Dow Jones 2H Chart – February 13, 2026 – Source: TradingView

Participants are reconsidering the idea that rate cuts won't be enough to save waves of structural reworkings in the global economy, where many sectors of the economy will have to make space for the revolutionary tool.

Tech, real estate, freight, entertainment, diagnostics, and more have been getting battered in the last month of action.

Yes, this offers some opportunities, but the issue lies in market pricing.

We live in a very high P/E environment, the highest we have seen since the late 1990s.

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Case Shiller P/E Ratios since 1980s– Source: Multpl.com

As this excellent piece argues, if this changes, Markets are doomed to quite aggressive repricing if a regime change forces a lower Price/Earnings ratio.

Note: As I am publishing this piece, Stocks are taking on a significant bounce, led by Tech and Semiconductor with Nasdaq leading. Mid-session update coming up soon.

Gold breaks back above $5,000, Silver rebounds

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Gold 2H Chart – February 13, 2026 – Source: TradingView

Gold has been holding quite a resilient range between $4,900 and $5,100.

Keep a close eye on these two boundaries as breaching them will dictate the upcoming sentiment for Metals.

Silver is back above $77, its key resistance is $84 but it is struggling to get back there.

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Silver 30M Chart – February 13, 2026 – Source: TradingView

Cryptos are pushing higher

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Current Session in Cryptos (10:40 A.M.) – Courtesy of Finviz

Solana is leading the action in Digital Assets – It remains at its 2022 Support.

Keep a close eye on Bitcoin as it nears $70,000: Closing back above the key level should bring some further buying flows throughout next week.

Safe Trades!

Follow Elior on Twitter/X for Additional Market News, interactions and Insights @EliorManier

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