Collapse 📊

Collapse

Well, that inflation data preview over the weekend might’ve gotten our hopes up a little too much, as the August inflation data blew investor expectations out of the water. The PriceStats data did predict what happened, but the real data was at a higher degree, and it’s clear the inflation crisis is nowhere close to being finished.

Prices increased by 8.3 percent in August, an improvement from 8.5 percent in July due to gas prices falling by more than 10 percent in the last month. This might seem good at face value, but the metric economists really care about is core inflation, which measures price increases while excluding energy and food prices due to their volatility. Core inflation CPI rose by 6.3 percent, which was an increase from 5.9 percent in July. This was a terrible sign for the economy as this solidified the case that inflation is continuing to persist in the economy, and this comes after multiple hikes by the Federal Reserve. Vehicle prices continued to increase along with housing and shelter costs, and even though food prices are excluded, it’s important to note that costs are rising by a good amount there. The previous report gave us some belief that inflation was really starting to slow down, but August has completely removed that belief. According to data from Moody’s, the average American is spending $460 more every month to buy the same goods and services as last year, and this is unsustainable for some families.

All of this resulted in the worst day for the stock market since June of 2020, with the indices falling by more than 4 percent each. This data solidifies the Federal Reserve’s decision next week, but it also plays a key role in the interest rate decisions after that as Powell said the officials need to see consistent progress before dialing it back. Tech stocks took a massive beating as interest rates are not for them, and fears of a U.S. recession are starting to creep up again.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
OPEC’s Decision 🛢
1 December, 2023

OPEC leaders just hosted an important late-November meeting that may signal a change in strategy.

Load More
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Facebook Twitter Youtube Instagram Snapchat Tiktok
learn
products
plan
Who we are
blog

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.