- US markets ended the week down significantly, driven by mixed economic indicators.
- A new 40Y record high CPI print walked back all talk of a peak in inflationary pressures. Core YoY CPI May print also came in higher than consensus at 6%.
- As a result of a new CPI high, the breakeven inflation rate has surged past 3% as traders brace and price in further rate hikes.
- Weak personal savings rate, poor preliminary consumer sentiment, declining household wealth and a downwards revision in Q2 GDP expectation all also contributed to the selloff.
For further details see:
Market Report: Week Of 6 June 2022