Markets Mixed as Inflation Data Calms Stocks, Bitcoin Surges

October's inflation data met expectations, with the Consumer Price Index rising 2.6% year-over-year, slightly up from September's 2.4%. Core inflation remained steady at 3.3%, above the Fed's 2% target. This led to increased speculation of a December interest-rate cut, with market-implied probabilities rising to 79%. Minneapolis Fed President Neel Kashkari expressed optimism about inflation's direction. Markets reacted positively, with small caps outperforming, and Treasury yields and the dollar easing. Gold prices rose, and Treasury-linked ETFs saw gains.