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- Daily Scoop 22-9-13
Daily Scoop 22-9-13
👋 Your Tuesday Scoops - Wall Street layoffs & Rent the Runway downsizing
Today's Scoop:Stumble
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Big Picture
It was the worst day in markets since June 2020.
Inflation isn't going away as quickly as investors had hoped.
Small business optimism is very low.
The Market:
⬇️
-4.3%
S&P 500: 3,932.69
1Mo:
-8%
| 1Yr:
-12%
| 5Yr:
+57%
Markets tanked today, giving up all of the recent gains fueled by optimism for cooling inflation.
The official August inflation report revealed prices for most goods and services kept rising
, despite significant declines in fuel costs. The Labor Department reported the August Consumer Price Index (CPI) increased 0.1% from the month before, after no increase in July. Economists actually expected prices to decrease overall.
On a positive note,
energy costs significantly declined in August
, and food prices increased at the slowest rate in months. But everything else climbed more than expected.
Overall, everything consumers spend money on is 8.3% more expensive than a year ago.
The monthly increases have slowed significantly, though. The 0.1% and 0% months of August and July are far slower than the ~1% monthly increases of the first half of the year. Investors have been hoping that prices would cool off more quickly.
Persistent inflation will likely mean more restrictive economic policy
from the Central Bank.
Small businesses are feeling the pain
of inflation, labor shortages, and supply chain issues. The National Federation of Independent Businesses (NFIB) Small Business Optimism Index sits near the lowest level of the decade.
Company Scoops ❤🌎💰
(Click to dig in & vote your reaction, see how others feel)
Goldman Sachs
-
Rent the Runway
-
AstraZeneca
-
JPMorgan
-
Peloton
(These links only work for 24 hours while the story is live)
🤓 Inside Scoop...
The
Consumer Price Index (CPI)
is one of the main ways economists track inflation.
Inflation
is the rate at which things get more expensive. The CPI looks at a set basket of stuff your average consumer spends money on and tracks how much it costs each month. The rate of change is inflation. Prices rarely go down. It's normal for things to get more expensive. You'll never be able to buy a Coke for a quarter again, but that's ok. Low inflation (~1-2% per year) is standard. High inflation, like we're seeing now with prices of essential goods going up nearly 8-10% per year, is a problem. It's unmanageable. Policymakers are looking to slow economic activity and cool spending so prices stop rising so quickly.
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