Market Overview [37] - Selling Pressure is Accelerating
Dear investors,
Welcome back to the Market Overview, where we provide technical and sentimental analysis about financial markets. On top of that, we deliver crucial market information that can influence financial markets to be always a step ahead of major market movements.
Main U.S. indices are falling through big supports, stocks are plummeting and cryptocurrencies are evaporating their values by the day. Investors are extremely pessimistic and we expect it to stay this way for the foreseeable future.
In this Market Overview we are diving deep in consumer sentiment and recent articles to see where the market is potentially heading the rest of the year.
U.S. Inflation Chaos
CONSUMER PRICE INDEX - MAY 2022
The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.0 percent in May on a seasonally adjusted basis after rising 0.3 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 8.6 percent before seasonal adjustment.The increase was broad-based, with the indexes for shelter, gasoline, and food being the largest contributors. After declining in April, the energy index rose 3.9 percent over the month with the gasoline index rising 4.1 percent and the other major component indexes also increasing. The food index rose 1.2 percent in May as the food at home index increased 1.4 percent.
Inflation broke another record in the United States, putting more and more stress on companies and especially consumers.
When May’s CPI data was released, the stock market sold off aggressively with the S&P 500 index falling almost 4%. Investors are now almost certain that the Federal Reserve (Central Bank of America) will fight inflation hard on by upscaling their current hiking cycle by several points.
With high inflation you would expect that inflationary hedge assets, like gold, would do great with a CPI release like this. Well.. It was not as we expected.
Keep reading with a 7-day free trial
Subscribe to Patellic to keep reading this post and get 7 days of free access to the full post archives.