A 40-year high! U.S. CPI rose 8.6% in May, beating expectations

The U.S. CPI increased by 1% month-on-month after seasonal adjustment in May, expected 0.7%, and the previous value was 0.3%; the CPI increased by 8.6% year-on-year, hitting a new high since December 1981. The core CPI, excluding food and energy, rose 0.6% month-on-month and 6.0% year-on-year, both higher than expected. U.S. inflation was hotter than expected, weighing on stocks.

After the data was released, U.S. stock index futures dived before the market, Nasdaq futures and S&P 500 futures fell more than 1%, and Dow futures fell 0.7%. The yield on the 10-year U.S. Treasury note rose to 3.085%, the highest since May 9.

If the CPI data is in line with expectations, or shows a slowdown, Wall Street may take it as a sign that inflation has peaked and the Fed may need to ease its rate hikes later this year.

Analyst Olivia Rockeman said U.S. inflation rose across the board in May, hitting a 40-year high, adding to expectations that the Federal Reserve will continue to raise interest rates sharply for a longer period of time.

Greg Bassuk, CEO of AXS Investments, said that the focus of investors in the future will be “no longer whether U.S. inflation has peaked, but how long inflation will continue.”

This article is reprinted from: https://news.futunn.com/post/16332462?src=3&report_type=market&report_id=207880&futusource=news_headline_list
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