October 10 Market Crash Explained: Key Reasons and Recovery Challenges

The financial markets experienced a significant downturn on October 10, driven by a confluence of negative factors. A hotter-than-expected Consumer Price Index (CPI) report reignited fears of persistent inflation, forcing the Federal Reserve to maintain a hawkish monetary policy stance with higher interest rates for longer. This triggered a sharp sell-off in risk assets, including equities and cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). Concurrently, a surge in U.S. Treasury yields, with the 10-year note breaching key psychological levels, made safe-haven bonds more attractive, drawing capital away from stocks. Geopolitical tensions in the Middle East added a layer of uncertainty, further dampening investor sentiment. The market is now struggling to stage a meaningful recovery due to this powerful mix of macroeconomic headwinds. Investors are grappling with revised expectations for rate cuts, leading to continued volatility and a "wait-and-see" approach that is suppressing buying pressure and preventing a sustained bounce.