Stocks Tumble On The Heels Of Another Disastrous Inflation Report

[mystery-ak]

Stocks Tumble On The Heels Of Another Disastrous Inflation Report


John Hugh DeMastri
Contributor
September 30, 2022 6:06 PM ET


All three major stock indices ended the third quarter in a bear market after closing Friday, together having the worst nine-month stretch in a calendar year since 2002, after yet another pessimistic inflation report sent all three indices tumbling at least 1.5%.

While the Dow Jones wavered in and out of bear market territory all week, stocks have generally been falling since the Federal Reserve announced its third round of significant interest rate hikes in just four months, which the majority of economists expect will trigger a recession as a cost of reducing inflation. On the heels of a higher-than-expected inflation report Friday by the Fed’s preferred inflation metric, the Personal Consumption Expenditures (PCE) Price Index, investors saw more reasons for the Fed to continue its aggressive rate-hike campaign.

“It’s really just another indication that inflation is still broadening,” Eric Diton, president at The Wealth Alliance, told The Wall Street Journal. “For anyone who’s watching the Fed, it’s ammunition for the Fed to keep hiking rates, which is certainly bearish for stocks and bonds.”

https://twitter.com/unusual_whales/status/1575945889264570368

As of Friday, the Dow was down 21% on the year, while the S&P 500 lost 25% and the Nasdaq had plummeted 32%, all easily surpassing the 20% loss that is typically considered the sign of a bear market, according to the WSJ. The Nasdaq and S&P 500 fell for the third quarter in a row for the first time since a streak that ended in March 2009.

The Dow also fell for a third straight quarter, but still has a ways to go to match the five-quarter decline from October 2007 that lasted through January 2009, according to data provided by the WSJ.

Inflation has also been setting records recently, with the cost of food increasing at the highest rate in 40 years in August, while inflation, as measured by the Consumer Price Index (CPI), hovers near historic highs at 8.3% in August. Federal Reserve officials have been repeatedly clear that the central bank will continue hiking rates until inflation is reduced, even at the cost of jobs or inducing a recession.

https://dailycaller.com/2022/09/30/stocks-tumble-worst-since-2002/

[catfish1957]

 

Some things are better left unsaid.......

[Smokin Joe]

Metals have dropped,too. That really doesn't make sense, as they are the traditional hedge.

[LMAO]

This has the potential to get and  keep Democrats out of power for a long time

[DB]

Metals have dropped,too. That really doesn't make sense, as they are the traditional hedge.

If manufacturing craters demand for metals drops.

[DefiantMassRINO]

Where's the "Inflation Reduction" that Grandpa Joe brags about?

I went to the grocery store earlier today.  Milk was $5.39/gallon, and chicken drumsticks were $1.89/lb.

[catfish1957]

If manufacturing craters demand for metals drops.

Also watching out for '29 like assest deflationary pressures too.  You are right about silver and platiinum applying to manufacturing demand, but gold has very minimal industrial applications, and its purpose is mostly for jewelry, coinage, and even more a currency base on a soverign basis.

Fundementals tell me that gold should not be in the $1600's/oz. right now

The mass cost inflation we are seeing is more related to awful monetary and governmental fiscal policy.  I am suspecting there may be some other cyclical undercurrents impacting the commodity markets. We are kind of in uncharted territory.  POTUS and his fin. cronies are doing their best Jimmy Carter, but at least Carter understood basic ecomomic principals of not giving congress a blank check in a inflationary spiral.

Hearing the bipartisan clamor of war drums?  I have my suspicions why, and they aren't altruistically intended towards Ukraine'a safety.

[Hoodat]

Metals have dropped,too. That really doesn't make sense, as they are the traditional hedge.

Traditional, yes.  But also a very poor one.

[Hoodat]

I went to the grocery store earlier today.  Milk was $5.39/gallon, and chicken drumsticks were $1.89/lb.

Have you priced mayonnaise lately?