June 13th 2022, 5:01:44 pm
(about a year ago)
🔻Stocks tumble on the hottest US inflation report in 40 years📈
North American equity markets plunged the most in three weeks, and US treasury yields spiked to the 2008 highs as today’s inflation report showed the fastest annual increase in the price level in the past 40 years.
US S&P 500 declined 2.9% to mark its second-worst week of the year and the ninth negative return week in the past ten weeks. The tech shares were the usual underdog taking the biggest hit, with the tech-heavy Nasdaq 100 losing more than 3%. Another report underlined the deteriorating US consumer sentiment in June, adding pressure to shares of airlines, casinos, and hotels. Canada’s S&P/TSX composite also lost 1.41%, where all the sectors were in red territory.
The last month’s US inflation report of 8.3% was believed to be the peak of the figure. Still, today’s number came out at 8.6%, adding to the bet that the US Central Bank will act more forcefully in terms of tighter policies and increasing interest rates to tackle inflation.
While inflation is hot in North America, the job market looks tighter than ever. In Canada, employers continued to hire at a robust pace last month, driving the unemployment rate to a record low of 5.1% and increasing wages by 3.9%.