Trish Regan: Wake Up, Everyone! Inflation Is HERE And Growing Much, Much Worse

Investors are struggling to interpret the worse-than-expected CPI numbers. Price inflation has jumped to 5.4% year-over-year. And, given the Fed’s resistance to raising rates, it is likely that this inflation will grow increasingly worse.

If the Fed chooses to act (and it’s unclear how it cannot if these price increases continue!) high-growth tech stocks are believed to be at risk.

Nonetheless, Federal Reserve Chairman Jerome Powell still insists the Fed is “still a ways off” from reducing its $120 billion in monthly bond purchases (designed to create demand to keep rates low.)

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As such – the market is at risk for becoming (again) a victim of poorly managed Fed policy. High inflation, overinflated valuations and the corporate bond bubble are all converging. If this is not properly negotiated with sophisticated and accurate financial engineering by our Federal Reserve, markets could be heading for a correction.

 

Equities

U.S. stock futures were flat in midday trading. The tech-heavy Nasdaq index did well, despite bad inflation data. The index was boosted by a surge in Apple’s shares.

  • S&P 500: 4,373 +0.10%
  • Nasdaq: 14,681, +0.03%
  • DOW: 34,889, -0.01%

U.S. Dollar and Treasuries

Treasury yields dropped. The dollar weakened.

  • U.S. Dollar Index (DXY): 92.42, -0.35%
  • 10-year Treasury yield: 1.358%

Stocks To Watch

Yunhong CTI, a custom film products manufacturer spiked on retail investor interest. The company was targeted for its high short interest and low float.

‘Meme stock’ Excela Tech was up in premarket trading, pushed up by other meme stocks. Sundial Growers posted gains as well as meme stock surged.

  • CTIB Yunhong CTI Ltd $3.560, +36.40%, 2.88M (volume)
  • XELA Exela Tech $4.6800, +0.3400, +7.83%, 2.81M (volume)
  • SNDL Sundial Growers $0.91, +0.0350, +4.00%, 555.36K (volume)

Commodities To Watch

Oil dropped along with the markets. Gold strengthened as investors looked for a hedge against inflation.

  • WTI crude: $73.67, -2.10%
  • Gold: $1,822, +0.71%

Crypto

The global crypto market cap increased by 3.05% in the last 24 hours. Bitcoin dropped below $30,000. Ethereum traded below $2000.

  • BTC: $32,354.80, -2.76%
  • ETH: $1,943.08, -4.21%
  • DOGE: $0.1957, -4.36%
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