Stocks drop after highly anticipated inflation report shows faster-than-expected rise in prices and consumer sentiment hitting a record low.
came in at its highest level since 1981, putting pressure on the stock market. The report showed prices rising 8.6% year over year, and 6% when excluding food and energy prices. Economists surveyed by Dow Jones were expecting year over year increases of 8.3% for the main index and 5.9% for the core index.
“Does it sort of force equities to stay at the bottom the range it’s been in? Perhaps. I don’t think this is enough to force it down to new lows,” Calvasina added. “It just reinforces the impact the CPI number had on consumer psyche. We can guess this is going to have a negative future impact on consumer spending. It’s a shocking number but this is what inflation does when it’s running as hot as it is,” said Peter Boockvar of Bleakley Advisory Group.
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