Shares rose on Wednesday as investors watched a new report on inflation, marking another decade of high inflation. Once again, this comes a day after Federal Reserve Chairman Jerome Paul reaffirmed that the Central Bank needed to control inflation.
According to the Bureau of Labor Statistics, the Consumer Price Index (CPI) grew by 7.0% by the end of 2021, the fastest pace since 1982. This is in line with Bloomberg data and accelerated by a 6.8% increase in November. Consumer prices rose slightly by 0.5% or 0.4% over the previous month, marking the 18th consecutive month of price increases.
Excluding food and energy prices, the so-called core consumer price index rose 5.5 percent in December last year, up from 1991. Signs in at high speed.
Wednesday’s market activity followed a rally on Tuesday, with markets at least temporarily relieved. In a hearing before the Senate Banking Committee, Powell reiterated that the central bank would use its policy tools to tackle inflation.
“If we see inflation at a higher level, than expected, if we have to raise interest rates from time to time, we will continue,” Paul said during the hearing.
The central bank has already announced in a telegraph that it will raise interest rates three times this year to near zero. However, some major Wall Street companies have predicted that the federation will increase prices four times compared to current inflation.
But while Paul doubled the federation’s goal of curbing inflation and using interest rates as a tool, he went on to say a little more about the federation’s plans to begin reducing its debt to nearly $ 9 trillion. The minutes of the federation’s December meeting Last week, Central Bank officials began debating the federation’s balance sheet after nearly two years of purchasing assets to support markets during the outbreak. Paul reiterated that he expects the audit process to begin this year.
BRI Capital Markets chief investment strategist Brian Belsky told Yahoo Finance Live on Tuesday that “I think the biggest issue in the minds of most investors around the world is ‘policy mistake’.” . “Mr. Powell went out today and said this is going to be a process … I think this will take a long time, and I think this will reassure investors.”
Despite high credit costs and tight financial conditions, fluctuations in U.S. stocks and technology stocks, especially in recent times, saw the reversal of Tuesday’s session, with better performance on the tech-heavy Nasdaq Compass.
“Technology is not a short-term risk because growth is far from over, but it is one of the easiest assessments,” Simon Hayman, a prospector for Global Investment Strategy, told Yaho Finance Live on Tuesday. “And of course those high-tech and big tech stocks were probably a little expensive by the end of last year and early 2022.
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11 ፡ 40 40 ET ET ፡ Category: Has another financial record as high as expected
The S&P 500 Financial Sector Exchange Trading Fund recorded a record high on Wednesday, the fourth in eight trading days so far in 2022.
During the morning trading session, ETF prices rose to a minimum of $ 41.65, up 6% year-over-year. Over the past 52 weeks, trading has gained 32 percent in the day, a 24 percent increase over the S&P 500 during that period.
Individual bank shares also gained on Wednesday. JPMorgan Chase, which reported quarterly earnings on Friday morning, grew 0.3 percent, while Citigroup shares rose the same margin.
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10 ፡ 59 hours in Ethiopia What do economists say about the highest inflation in 40 years in Ethiopia?
Despite rising inflation since 1982, US stocks are based on this morning CPI publication. According to some experts, this is due to rising prices in the market, as consensus economists had previously wanted inflation to increase by 7 percent in December. And, of course, some of the people under the heading CPI index are back compared to the previous months.
Here is what some economists and strategists have to say about the new CPI report based on emails and notes sent to Yahoo Finance.
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Although today’s inflation is in line with expectations and that of most analysts, the data should have been better, considering the significant decline in energy prices, especially for gasoline. Major inflation is now rising sharply from month to month. Inflation pressures. It is now widespread in the entire US economy. ” World Economist Matthew Sherwood in the Economist Intelligence Unit
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Continued high inflation reinforces the hawkish narrative presented by the federation with recent strong labor market data. Looking ahead, Omicron seems to be deciding the fate of the economy in January and possibly February. But current signs of how the new difference is. The player points out that the federation will be on track to reduce its pedestrian monetary policy for the first time since early March 2018. – Christian Scherrmann, DWS Group American Economist
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“December to 7.0% … It may not be as high as we thought it would be at 7.2% in January and February, but the race for big increases is over and will begin to fall in March. We want 4-1 / 2% in September “- Ian Shepherdson, Chief Economist at Pantheon Macroeconomics
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“With inflation driven by federal stimulus and massive budget stimulus, store-bought commodities will not see another year of inflation like the one in 2021. The risk is real. Even the service sector in the economy has not returned to pre-epidemic levels due to rising prices in conjunction with consumer goods. Chris Rupkey, Chief Economist at FWDBONDS
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9 ፡ 31 31 31 ET ET ፡ ፡ ፡ ፡ ፡ አክ ይከፈ ይከፈ ይከፈ ይከፈ ይከፈ ይከፈ
Here is what happened on Wednesday morning.
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S&P 500^ GSPC): +25.02 (+ 0.53%) to 4,738.09
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Down (JI DJI): + 170.06 (+ 0.47%) to 36,422.08
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Nasdaq (^ IXIC): +130.07 (+ 0.83%) to 15,283.58
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Dump (CL = f): + $ 0.93 (+ 1.15%) to $ 82.15 barrel
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Gold (GC = F): + $ 1.70 (+ 0.09%) to $ 1,820.20 per ounce
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10-year treasury (^ TNX)1.72% to produce -2.6 bps
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Consumer prices have plummeted since 1982, the biggest jump since 1982.
The US Consumer Price Index (CPI) has seen rapid growth in 40 years by the end of 2021, still indicating high inflation, as supply chain bottlenecks continue to grow and demand is high.
Prices rose 7.0% in December last year – the fastest pace since June 1982. The month-on-month increase was 0.5% or slightly above the expected 0.4%, but gained 0.8% from November.
Category, used cars and trucks and accommodation prices contributed significantly to the article. Used cars and trucks index increased for the third consecutive month and increased by 3.5% in November to 3.5% month-on-month. This index is up 37.3 percent compared to the same month last year. Shelter prices increased by 0.4 percent.
Consumer inflation rates, which do not include volatile food and energy prices, increased by 5.5% in December last year, the fastest pace since 1991. This is an increase of 4.9% year-on-year.
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7 ፡ 15 15 15 ET ET Wednesday’s stock share futures will be available ahead of the CPI report
Here is what the markets were trading on Wednesday before the opening bell:
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S&P 500^ GSPC): +5.5 points (+ 0.12%) to 4,710.50
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Down (JI DJI): + 41 points (+ 0.11%) to 36,169.00
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Nasdaq (^ IXIC): + 32.75 points (+ 0.21%) to 15,863.75
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Dump (CL = f): + $ 0.73 (+ 0.9%) to $ 81.95 barrel
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Gold (GC = F): – $ 1.80 (-0.10%) to $ 1,816.70 per ounce
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10-year treasury (^ TNX)1.745% to produce -0.1 bps
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6 09 09 pm ET Tuesday’s stock futures open slightly.
Here is what happened on Tuesday night.
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S&P 500 Future (ES = F): + 0,5 points (+ 0.01%), to 4,705.50
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The future (YM = f): +2 points (+ 0.01%), to 36,130.00
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The future of Nasdaq (NQ = f) :: +3.5 points (+ 0.02%) to 15,834.50
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Emily McCormick is a Yahoo Finance reporter. Follow her on Twitter.
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