CPI Surge to 3.3% Collapses Rate-Cut Bets, Triggers 22% Wipeout in Cloud ETFs
March 2026 CPI jumped to 3.3% from 2.4% in February, collapsing Fed rate-cut expectations to a 1-in-3 probability for the year. Ten-year Treasury yields holding near 4.23% have driven severe multiple compression across cloud and AI-focused equities, with WCLD down 22% year-to-date. Investors are rotating into defensives and gold as geopolitical risk around the Strait of Hormuz amplifies the risk-off mood.
Salvado•