Wall Street extends sell-off on fears of long-term high inflation

Wall Street’s main indexes fell on Wednesday as a surge in U.S. consumer prices last month deepened fears that high inflation is here to stay amid supply chain disruptions.

U.S. inflation heats up

Reuters:

The Labor Department’s report also showed that in the 12 months through October the consumer price index increased 6.2%, the largest year-on-year advance since November 1990.

“Even though the Federal Reserve believes that inflation is transitory, the evidence is starting to add up that that’s not true,” said Rick Meckler, partner at Cherry Lane Investments In New Vernon, New Jersey. “The Fed has made very few moves outside of what they’ve told the markets they plan to do, but I think even they’ve got to be a little concerned by the strength of the increase.”

The report comes a day after producer prices data showed a solid rise in October and highlights the extent to which manufacturers were passing on higher costs to consumers, whose spending accounts for 70% of the U.S. economy.

The CBOE Market Volatility index a gauge for investor anxiety, shot up to its highest level in nearly one month earlier in the session.

Six of the 11 major S&P 500 sectors fell in early afternoon trading, with technology stocks pulled lower by a 1% decline in mega-cap companies Apple Inc and Microsoft Corp.

MacDailyNews Take: Once again, a healthy U.S. economy, consumer confidence, and consumer spending are essential to Apple, as America is Apple’s largest market, by far.

‘Tis best to get a handle on inflation, if you know how, while you still can.MacDailyNews, May 11, 2021

Inflation is repudiation. — Calvin Coolidge

When a business or an individual spends more than it makes, it goes bankrupt. When government does it, it sends you the bill. And when government does it for 40 years, the bill comes in two ways: higher taxes and inflation. Make no mistake about it, inflation is a tax and not by accident. — Ronald Reagan

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20 Comments

      1. Weak lies. Typical.

        What are you named after, Grandpa Dementia’s usual daytime attire?

        A contrast so stark that even the average American voter can see it:

        How President Trump created a tremendous U.S. economic boom – September 7, 2018

        U.S. consumer confidence surges to 18-year high – October 30, 2018

        U.S. unemployment hits five-decade low as employers step up hiring, wages increase – May 3, 2019

      2. Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia, Russia…

        Smarmy lying losers.

      3. Presidents have been handing their successor a bag of dog ends for decades.
        It’s called debt and debt’s weight has real consequences…despite what the MMT’rs say.

        Creating money by moving the decimal, like the Fed has been doing for a looong time devalues each dollar…simply.

        There’s wide variance as to where it materially started, but it’s worth noting the Fed is designated as the market/econ/employment manager, but the dollar’s value has dropped over 90% since its inception.

        Saying it’s Trump’s fault shows you’re happy with your naive narrative.

    1. It’s amazing how Republicans always screw things up, leave or get voted out of office, and then try to blame it all on the incoming Democrat.

      Nixon/Ford – recession & stagflation…
      Reagan/GHW Bush – banking sector crash & recession…
      GW Bush – housing market crash & massive recession…
      Trump – tax cut for the rich w/ record deficit spending, bungled COVID-19 response, & recession…

      You folks are just too much…

      1. Hey, liar, your lie (blame it on the last guy) is old and tired. Just like your illegitimate puppet wandering around in the White House shitting his pants.

        Under President Trump, we had working supply chains, secure borders, low fuel prices, record low unemployment, stores with fully stocked shelves, low inflation, peace breaking out across the Middle East, a powerless Taliban, China on notice, North Korea contained, etc., etc., etc.

    1. please moderate, because my precious eyes can’t handle these words I see..oh the horror, the horror! My gigantic, impressive brain that my mother told me is so amazing simply cannot abide these comments..and if you do not do as I say, I will remove myself from MDN! Because I am so special, and worth so much more than the fools I see posting above, you will surely regret it! You will miss me so much!

      Is that what you are saying?

  1. Anyone who doesn’t think Biden is a 100% train wreck simply doesn’t pay attention. At this point, if the mountains of evidence staring you right in the face every day haven’t swayed you, then you are no longer a thinking human being..you are a zombie.

    Propaganda is very impressive..it literally can take over people’s souls..once they think a political party makes them a “good person” and they attach their identity (this is who I am), they are done. All they have to do is keep hammering away the messaging, and bingo they made a zombie out of someone who thinks they are incredibly smart (WRONG).

  2. Everyone here is missing the point. The last thing you want to hold during high inflation is cash. Cash is exactly what is being inflated into nothingness. You want to hold asset, like land, stocks, commodities while inflation pushes them up. People panic selling stocks to hold depreciating stocks are idiots and/or panicking into irrationality.

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