September 14th 2022, 9:49:28 pm
(about 9 months ago)
The US and Canadian stocks rebounded on Wednesday slightly after the biggest sell-off of 2022 on Tuesday, which was caused by the hotter-than-expected inflation report. S&P 500 added 0.34% on Tuesday after sinking more than 4%. Nasdaq added 0.74% and Canada’s S&P/TSX Composite added 0.41%.
The latest US CPI report showed that price levels increased 0.1% in August, putting inflation at 8.6% year-over-year, showing inflation has not declined as forecasts showed. The hot inflation will most likely push Fed to pursue their path for another 0.75% interest rate increase in the September meeting. Canada added another 0.75% last week to move rates to 3.25%. The US is behind Canada at 2.5%.
The US dollar jumped on the news, with the DXY index at 110. Other assets, including gold and cryptos, declined.
The mortgage rates continue to climb in US and Canada, doubling since the beginning of the year. Most Canadians who got a variable mortgage in the last 12 months have hit their variable rates, meaning their monthly payment are recalculated and adding around 700 to the household costs on average.