Once again equity markets tumbled today, pushing the Dow and the Russell 2000 into the red for the year. For the NASDAQ it was the eighth consecutive day of losses.
Causes for today's sell-off are numerous:
Tomorrow is what the market is really waiting for, the release of the May consumer price index at 8:30 a.m. eastern. The consensus for the CPI and core CPI is 0.2% and 0.3% respectively. If the numbers comes below or within estimate, we can expect the market to start recovering from this month long correction.
Causes for today's sell-off are numerous:
- Before the bell, the Labor Department reported a 0.3% increase in the May producer price index (core), slightly higher than expected.
- About two thirds of global markets also reported major declines, mostly due to worries regarding rising interest rates in the U.S. choking off consumer demand for exports.
- Yields of short-term to long-term bonds continued their inversion, indicating the market's expectation of an economic slowdown.
- Fear the Fed is going too far with its rate hikes.
Tomorrow is what the market is really waiting for, the release of the May consumer price index at 8:30 a.m. eastern. The consensus for the CPI and core CPI is 0.2% and 0.3% respectively. If the numbers comes below or within estimate, we can expect the market to start recovering from this month long correction.
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