Meanwhile, Bloomberg’s senior exchange-traded fund (ETF) analyst, Eric Balchunas, took to Twitter on October 13, to comment on the latest inflation data. The analyst highlighted the S&P 500 index, treasury bonds, and gold are all down in unison on CPI news, suggesting that there is ‘nowhere to hide.’ Baclechunas added on the impact of data:
Wiping out gains
S&P 500 futures sank on the news wiping out gains seen in the previous session; meanwhile, the index is flirting with 2-year lows, Nasdaq futures dropped by 3%. While the US consumer prices hit a 40-year high to 9.1%, it became clear that efforts by the central bank to fight off inflation have so far been futile. Meanwhile, the largest CPI data increase was seen in the shelter, food, and medical care indexes, while the gasoline index fell by 4.9%. While the food index rose by 0.8%, the energy index, in general, declined by 2.1%, a continuation of the 5% drop seen in August.
More hikes
RSM US Chief Economist Joseph Brusuelas also took to Twitter to voice his opinion on the stickiness of inflation. As things stand now, more rate hikes will be on the table, along with more volatility and possibly red days to come, despite some signs that a recovery in stocks could occur soon. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
