A cooler-than-expected US inflation report triggered a sharp two-day reversal across global markets this week, driving Bitcoin, gold, and equities sharply higher after a Monday selloff fueled by escalating US-Iran tensions. The rebound underscored the market's acute sensitivity to inflation signals and shifting expectations for Federal Reserve policy.
The US Consumer Price Index (CPI) report, released on June 1, 2026, showed monthly inflation rising 0.4%, with the annual rate coming in below market expectations. The data eased fears that the central bank would need to maintain an aggressive tightening stance. Softer price pressures directly reduced the likelihood of further rate hikes, lowering real yields and lifting the appeal of risk assets across the board.
The relief rally was broad-based, with Bitcoin, gold, and major stock indices recovering ground as traders refocused on monetary policy expectations rather than geopolitical headlines. Earlier in the week, markets had tumbled after the United States and Iran traded strikes near the Strait of Hormuz, with President Trump announcing a renewed naval blockade of Iranian ports. That event triggered a broad selloff in stocks, bonds, crypto, and metals on Monday.