Tonight, the global financial markets will focus on the release of the CPI data. In the current sensitive market environment, this key indicator may trigger a chain reaction, and investors need to pay close attention.

Data below expected scenario: If CPI data is lower than expected, it will be interpreted as a signal that inflationary pressures are further easing. The market may believe that this creates conditions for the Federal Reserve to accelerate interest rate cuts, potentially driving short-term gains in high-risk assets such as stocks and digital assets, and market sentiment is expected to improve rapidly.

Data above expected scenario: If CPI data exceeds expectations, market concerns about the Federal Reserve delaying interest rate cuts may intensify. In this case, a rapid decline may occur, and short sellers may take the opportunity to increase selling pressure, exacerbating market volatility.

Data meets expected scenario: If the data is largely consistent with expectations, the market reaction may be relatively calm. Investors' attention may shift to other important events, such as the upcoming Federal Reserve meeting or the release of PPI data, in search of new market direction guidance.

It is worth noting that regardless of the data, market volatility is almost inevitable, and the initial reaction can be misleading. Especially in the first few minutes after data is released, the market may experience 'false breakouts' or 'false retracements', which can easily lead to a situation of losses for both bulls and bears. For short-term traders, it is crucial to strictly control positions at this time to avoid losses during extreme emotional fluctuations.

Overall, the release of CPI data will have a significant impact on the market. Investors should remain vigilant and follow the deeper implications behind the data, not just the surface numbers. At the same time, developing flexible investment strategies to adapt to various market conditions that may arise will be a wise move to navigate this critical moment.