Sep 11 in Stocks
Inflation increased, what does this mean ?
Underlying US inflation picked up in August, driven by rising housing costs. The core consumer price index (CPI), which excludes food and energy, rose 0.3% from July and 3.2% year-over-year. This increase lessens the likelihood of a significant Federal Reserve rate cut, though a small cut is still expected.
In response, Treasury yields rose, and S&P 500 futures dipped slightly, reflecting reduced expectations for aggressive rate cuts. For future scenarios, if inflation remains persistent, it may lead to tighter monetary policy, potentially affecting stock valuations, especially in rate-sensitive sectors like technology and real estate. High inflation impacts stocks negatively.
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Inflation increased, what does this mean ?
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