May data on inflation showed that price increases accelerated unexpectedly last month, with consumer prices rising 8.6% year-on-year in May, the highest since 1981. Consumer climate data released on Friday morning they reached a record low as inflation weighed on American households. The S&P 500, Dow and Nasdaq fell sharply after printing. The S&P 500 sank 2.9% during the session and more than 5% since last Friday, marking its worst weekly performance since January. The index finished just one hair above 3,900, or its lowest level in about three weeks. The Dow fell 880 points, or 2.7%, and the Nasdaq Composite fell 3.5% by the end of Friday’s session. Bond yields rose sharply at the short end of the curve and the 2-year yield jumped to over 3%. The yield on the 10-year benchmark bond increased to more than 3.1%. US crude fell to about $ 120 a barrel after rising above $ 122 a barrel earlier this week. For market participants, the publication of the Consumer Price Index (CPI) by the Bureau of Labor Statistics was a key imprint, offering a fresh look at the extent to which price increases have been sustained throughout the US economy. The index accelerated unexpectedly to record an annual increase of 8.6% in May, after rising 8.3% in April. This marked the biggest jump since the end of 1981, eliminating the previous 41-year high on the CPI in March, which rose 8.5%. On a monthly basis, the CPI also increased by 1.0%, or more than the expected increase of 0.7% and an increase of 0.3% in April. Core inflation, which does not include volatile food and energy prices, rose 6.0% year-on-year after rising 6.2% in April. Inflation has remained a major issue for investors, policymakers and the American public this year. Higher prices have threatened to burden consumer spending – the mainstay of US economic activity – as goods and services become increasingly inaccessible. Inflation has already shown signs that it is triggering a shift in spending on certain discretionary products to other market segments. And on Friday, the closely monitored consumer climate index fell to an all-time low as inflation worries weighed on Americans. The story goes on For investors, inflation has also been a key driver in moving the Federal Reserve forward. As the Fed aims to help reduce rapidly rising prices, the central bank is widely expected to raise interest rates by another half a point at next week’s policy meeting, further raising the cost of corporate lending and business. Amid these concerns about the impact of inflation on the economy and the Fed’s subsequent moves, stocks continued to trade volatile. Each of the three main averages was well on its way to recording a consecutive week of losses, based on Thursday’s closing prices. The S&P 500 was down about 2% on a weekly basis. “At the end of the day, markets are just facing a lot of uncertainty right now. And it’s not just this inflation story,” Jack Manley, global market analyst at JPMorgan Asset Management, told Yahoo Finance Live on Thursday. “We still have some uncertainty, some uncertainty about what the Fed is going to do. The war in Europe continues to rage. And we know there are new developments on this front every few days.” “There is a lot to assimilate at the moment. And without any real clarity on these things, it is difficult for markets to actually move higher or lower,” he added. “It’s all the markets want at the end of the day, it’s new. And no news is bad news.” –
4:08 p.m. ET: Shares record worst week since January after print market inflation
Here were the main moves in the markets from 4:08 p.m. ET:
S&P 500 (^ GSPC): -116.96 (-2.91%) at 3,900.86 Dow (^ DJI): -880.00 (-2.73%) at 31,392.79 Nasdaq (^ IXIC): -414.20 (-3.52%) at 11,340.02 crude (CL = F): -0.92 $ (-0.76%) at $ 120.59 per barrel Gold (GC = F): + $ 23.10 (+ 1.25%) at $ 1,875.90 per ounce 10-year Treasury (^ TNX): +11.2 bps for a yield of 3.1560%
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11:08 a.m. ET: (Almost) nowhere to hide in the Friday market
Our inbox was flooded on Friday morning by economists’ reactions to the May inflation data, and several stores used the “where to hide” as the main hook to talk about this data. But the same goes for buying this ugly Friday morning. The Nasdaq was down 3.3%, about 90 minutes after the session, and the S&P 500 was down 2.6%, while all 11 S&P sectors were down, with eight of them falling more than 2% in morning trading. There are almost no safe places in this market right now. In terms of real market risk, ARK Innovation (ARKK) is falling more than 6% and the 2021 SPAC and IPO category is also under pressure. These were some of the best rally performances we have seen investors try to reap in recent weeks. “The Generals” – the group formerly known as FAAMNG shares – are down more than 3%, however, showing the widespread stress of Friday’s action on investors. Apple (AAPL), which withstood better than any other mega cap technology company through this sell-off in the market, is again the most resilient performance, falling 3.5% in morning trading. Consumer Staples (XLP) is the industry with the best performance so far in today’s trading, recording a drop of only 0.4% and a rally from the opening. Grocery stores are the only bright spot on the market today, as higher food prices are likely to pass into the results of these companies in the coming months. —Myles Abroad, Purchasing Editor –
10:33 a.m. ET: Consumer climate falls to historic low: U. Michigan
The consumer climate fell to its lowest level ever recorded in early June, with rising pump prices putting a strain on American wallets. The University of Michigan Preliminary Consumer Price Index fell to 50.2 in June, or a record low since the institute began monitoring the data. This followed the reading of the May index at 58.4 and lost the estimates for 58.1, according to Bloomberg data. “The consumer climate has shrunk by 14% since May, continuing a downward trend last year and reaching its lowest level since the mid-1980s recession,” said Joanne Hsu, director of Surveys. of Consumers for the University of Michigan, he said in a statement. “Consumer estimates of their personal financial situation have deteriorated by about 20%,” Hsu added. “Forty-six percent of consumers attributed their negative views to inflation, up from 38% in May; that share has only been surpassed once since 1981, during the Great Recession.” Hsu also noted that half of consumers surveyed mentioned gas without prompting in their interviews, up from 30% in May. –
9:32 a.m. ET: Shares opened lower after further inflation ramp
Here were the main moves in the markets from 9:32 a.m. ET:
S&P 500 (^ GSPC): -69.64 (-1.73%) at 3,948.18 Dow (^ DJI): -513.18 (-1.59%) at 31,759.61 Nasdaq (^ IXIC): -219.70 (-1.87%) at 11,534.53 crude (CL = F): -0.47 $ (-0.39%) at $ 121.04 per barrel Gold (GC = F): -18.50 $ (-1.00%) to $ 1.834.30 per ounce 10-year Treasury (^ TNX): +3.7 bps for a yield of 3.0810%
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9:03 a.m. ET: Futures shares are accelerating downwards following the hot print of the CPI in May
Here were the main moves in the markets from 9:03 a.m. ET:
S&P 500 Futures (ES = F): -55.25 points (-1.38%) at 3,961.00 Dow futures (YM = F): -384 points (-1.19%) at 31,879.00 Nasdaq Futures (NQ = F): -198.75 points (-1.62%) at 12,076.25 Crude (CL = F): + 0.07 $ (+ 0.06%) at $ 121.58 per barrel Gold (GC = F): -8.30 $ (-0.45%) to $ 1,844.50 per ounce 10-year Treasury (^ TNX): +0.2 bps for a yield of 3.044%
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7:14 a.m. ET: Gross futures before inflation data
Here were the main moves in the markets from 7:14 a.m. ET:
S&P 500 Futures (ES = F): -6.25 points (-0.16%) at 4,010.00 Dow futures (YM = F): -85 points (-0.26%) at 32,178.00 Nasdaq Futures (NQ = F): +6.25 points (+ 0.05%) at 12,281.25 Crude (CL = F): + 0.94 $ (+ 0.77%) at $ 122.45 per barrel Gold (GC = F): $ -8.20 (-0.44%) to $ 1,844.60 per ounce 10-year Treasury (^ TNX): -0.7 bps for a yield of 3.035%
NEW YORK, NY – JUNE 03: Traders work on the floor of the New York Stock Exchange (NYSE) at the beginning of trading day on June 3, 2022 in New York. A new job report released by the Department of Labor this morning shows that employers added 390,000 jobs in May. Shares fell in anticipation of Friday’s opening campaign, putting the indexes back in the red for the week. (Photo by Spencer Platt / Getty Images) – Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter. Read the latest financial and business news from Yahoo Finance Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard and LinkedIn
