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Consumer prices rose at annual rate of 2.9% in August, as weekly jobless claims jump

1. Consumer price index rose 0.4% in August, indicating inflation pressures. 2. Annual inflation rate now at 2.9%, matching economists' expectations. 3. Core inflation, excluding food and energy, increased by 0.3% to 3.1%. 4. Jobless claims unexpectedly rose to 263,000, surpassing estimates. 5. Economic signals present challenges for the Federal Reserve's upcoming decisions.

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FAQ

Why Bearish?

Rising inflation could lead the Fed to maintain or increase interest rates, impacting economic growth. A similar situation in 2018 where rising inflation led to market corrections serves as a historical reference.

How important is it?

Economic indicators significantly influence market sentiments and Fed policy, crucial for S&P 500 valuations.

Why Short Term?

Immediate reactions are likely due to upcoming Fed decisions based on current economic indicators. Historical precedent shows quick market adjustments to Fed policy changes.

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