After the release of US inflation data, Wall Street closed negative and ended another week in the red

FILE PHOTO: A trader works at the New York Stock Exchange (Reuters/Andrew Kelly)

Actions Wall Street It fell on Friday after inflation beat expectations in a highly anticipated report that It lays the groundwork for further monetary tightening.

Industry average Dow Jones He fell 2.7%That is, about 880 points to 31392.29. Indicator Standard & Poor’s 500 lost 2.9%up to 3900.79 points, while the index rose Nasdaq compoundrich in technology, fell a 3.5%Up to 11340.02 points.

IPC grew by 1% compared to Aprilafter a modest 0.3% increase in the previous month, the Labor Department reported, well above the expectations of analysts, who had expected inflationary pressures to ease slightly.

Several people make purchases at a supermarket in New York (EFE/EPA/Peter Foley)
Several people make purchases at a supermarket in New York (EFE/EPA/Peter Foley)

The data showed that gasoline jumped a 4.1% per monthwith significant increases in housing, airline tickets, used and new vehicles.

Rampant inflation in America is putting severe pressure on families, forcing them to pay more for food, gas and rent, and limiting their ability to afford discretionary things, from haircuts to electronics. Low-income Americans, African Americans, and Hispanics, in particular, suffer because, on average, a greater proportion of their income is spent on necessities.

Economists expect inflation to ease this year, though not by much. Some analysts expect that The inflation indicator reported by the government on Friday – the Consumer Price Index – may drop below 7% by the end of the year.. In March, year-over-year CPI reached 8.5%, the highest rate since 1982.

What this probably does is change the account of what the Fed could do in September versus what it could do next week.‘,” said Art Hogan, of National Securities, New York.

By this I mean the safest thing is that there will be a hike in interest rates next week. 50 basis points (bps) … But the bets for September were 50-50 between a high of 25 and 50 basis points, and now that has definitely changed to 50 basis points.”

Inflation is hot and hot and hotsaid Brian Jacobsen, senior investment analyst at Allspring Global Investments. “Basically, everything went up.”

No relief in sight, but a lot could change between now and SeptemberJacobson said. “Nobody knows what the Fed will do in a few months, including the Fed.”

The Federal Reserve’s monetary policy meeting will be held on 14 and 15 June. Investors fear that a tight labor market combined with stubbornly high inflation will force the US central bank to accelerate the withdrawal of its pandemic support policy.

(With information from The Associated Press and Reuters)

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