Why the Stock Market Tanked After a Tame Inflation Report

why the stock market tanked after a tame inflation report

Sumary of Why the Stock Market Tanked After a Tame Inflation Report:

  • On a percentage basis, the Nasdaq Composite (NASDAQINDEX:^IXIC) and S&P 500 (SNPINDEX:^GSPC) had smaller losses than the Dow Jones Industrial Average (DJINDICES:^DJI), but small-cap stocks reacted even more negatively.
  • Index Percentage Change Point Change Dow (0.84%) (292) S&P 500 (0.57%) (26) Nasdaq (0.45%) (68) Data source: Yahoo!
  • Yet even a lower-than-expected reading on the Consumer Price Index wasn’t enough to calm nerves among investors.
  • The core CPI is up 4% from where it was this time last year, and while both numbers are lower than they were last month, they’re still well above the targeted 2% inflation rate that the Federal Reserve has historically used as a long-term target.
  • Rather, we should get a month or two of steep price declines in order to make up for the unsustainably high year-over-year inflation rates that we’ve seen throughout much of 2021. Nevertheless, it was clear from the financial markets on Tuesday that investors have no expectations that the Fed will change its course.
  • Treasury bond yields moved lower, reflecting the fact that even slightly tamer inflation numbers will give central bankers the justification they need to keep interest rates low just a little bit longer.

Want to know more click here go to source.

From -

Generic selectors
Exact matches only
Search in title
Search in content

Site Language

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.