This Market Is Very Scared About US CPI: 3-Minutes MLIV

• Asian stocks and US tech futures are negative, indicating a cautious start to the trading day.
• The market is perceived to be in the 'problematic end game phase' of the AI bubble, leading to increased volatility.
• US May CPI data is highly anticipated, with expectations of topping 4% and potential upside risk, influencing Fed rate hike expectations.
• Strong US jobs data has shifted market focus back to macro indicators, with bond traders preparing for possible multiple Fed hikes if inflation persists.

The market is exhibiting bearish sentiment, particularly in tech, as investors navigate the 'end game phase' of the AI bubble and growing concerns over US inflation. Upcoming US CPI data is a key focus, with bond traders positioning for potential Fed rate hikes following strong jobs data, suggesting increased market sensitivity to macro indicators.