The new date is Jul 13, 2022.
The stock market tanked on Wednesday after the Labor Department reported inflation surged to new highs in June, adding to already widespread recession fears as investors think the Federal Reserve will have to get more aggressive about raising interest rates to tame surging consumer prices.
Markets took a hit after yet another red-hot inflation report.
The markets opened lower, with the S&P 500 falling 1% and the tech-laden Nasdaq losing 1%.
Consumer prices rose 9.1% in the 12 months ending in June, up from the 8.8% increase that experts were forecasting, but still below the 8.6% recorded in May.
Excluding volatile food and energy prices, the core consumer price index came in at 5.9%, up from 5.2% the month before and above the 5.6% Wall Street analysts were expecting.
The majority of traders now expect the central bank to hike rates at its upcoming meeting by at least 75 basis points.
The two-year Treasury yield jumped to 3.16% on Wednesday, higher than the ten-year rate which sits at just over 3%.
Delta Air Lines' shares fell over 7% after reporting solid profits but a big jump in costs, as investors continued to watch corporate earnings.
The inflation report was much higher than expected and it shows that inflation has not peaked. The Fed is poised to raise interest rates by 0.75% this month and unlike prior consensus that they would begin raising rates by lesser amounts in the subsequent months, it is becoming clear that they are going to need to keep raising rates by at least that much.
The consumer price numbers for June are ugly and clearly a negative data point for markets, but the Fed was already going to do 75 basis points on July 27th. Disinflationary forces will gather steam as inflation slowly comes back down later this year, but it will take a couple of months for this to come through in the actual government data, according to him.
Inflation spiked in June, hitting a new 40-year high.
Wall Street Firms Slash S&P 500 Price Targets.
The S&P 500 lost over 1% as investors braced for the upcoming earnings season.
The stock market fell after the US economy added back 372,000 jobs in June.
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