Peak Inflation Is Likely Here


US stocks rallied at the beginning of the day after a cooler-than-expected signaled that the inflation peak could be in place. However, the rebound in equities did not last long as rebounded back above the $100 level. Stocks will remain a choppy trade as investors await to see what happens with commodity prices as the war in Ukraine shows no signs of easing. President Putin’s comments that peace talks have hit a ‘dead end’ suggest an end to fighting does not seem like it will happen anytime soon.

Inflation Spirals To 8.5%

US inflation rose to a four-decade high as food, energy, and shelter costs surged in March. Headline CPI in March surged by 8.5% from a year ago, a tick higher than the consensus estimate and six-tenths above the prior reading. The (which strips out food and energy) decelerated monthly with a 0.3% gain, less than the prior 0.5% reading.

Used car/truck prices fell 3.8% for the month, which is the second consecutive monthly decline and a welcome sign that the supply side shocks could finally be fully priced. Inflation is moderating as yields come in following the not-so-terrible inflation report. It is hard to be overly optimistic about the US consumer given the significant declines in real average weekly earnings, widespread gains across food, energy, and shelter, and geopolitical uncertainty that could keep commodity prices elevated.

Inflation will take care of itself if geopolitical risks improve, and expectations should remain that the Fed won’t have to aggressively tighten policy and send the US economy into a recession.

Bitcoin

is attempting to hold onto the $40,000 level as crypto investors grow nervous about the possibility that the bond market selloff could trigger another rout for cryptos. A large amount of institutional money that became crypto investors started in 2021, and they bought bitcoin between the $30,000 and $40,000 range, suggesting they may want to buy this dip if they still believe in the long-term outlook.



Source link

Related articles

Apple simply added extra frost to its Liquid Glass design

Apple’s new Liquid Glass design language simply received slightly extra… frosted. Within the third iOS 26 developer beta, Apple dialed again the transparency of navigation bars, buttons, and tabs that when allowed you...

RISKKILLER – SET UP GUIDE – Buying and selling Methods – 7 July 2025

RiskKILLER AI, is our new EA undertaking with Multi Property Danger diversified, Bitcoin boosted and AI assisted Danger administration. 📌 The idea https://www.youtube.com/watch?v=WKQ2Bx2bgpM...

Romero Video games says studies of its demise are enormously exaggerated

It appeared that Romero Video games might need shuttered as a consequence of the final week, however the studio continues to be alive and kicking. In to a on Bluesky, the...

Bitcoin To Repeat Parabolic Section From 2017 And 2021? Right here’s The Goal

Bitcoin is at the moment on the trail to holding a robust footing above $109,000 after reclaiming the $108,000 worth stage previously seven days. Notably, Bitcoin’s worth  has gained greater than $3,000 over...

10 Excessive Dividend Tech Shares For Development And Revenue

Revealed on July seventh, 2025 by Bob Ciura The know-how trade is among the most enjoyable areas of the inventory market, recognized for its excessive development and propensity to create large returns for early...
spot_img

Latest articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

WP2Social Auto Publish Powered By : XYZScripts.com