Stocks slammed after inflation numbers

By Peter Bukov|

Published: May 13 2021, 09:33 GMT+0

Stocks slammed after inflation numbers


According to data released on Wednesday, the US consumer price index rose 4.2% in April from a year ago, well above expectations of 3.6% and climbing to its highest rate since the 2008 financial crisis.

Additionally, the core CPI rose 3.0% over the past 12 months; and that was its largest 12-month increase since January 1996.

Equities were massacred after the data, with the main US benchmarks falling 1-3% to 6-week lows, with the decline continuing today as well. 

The EURUSD pair fell also, but the dip is being bought, while the 10-year US yield jumped above the previous highs of 1.68%. 

Precious metals were also slammed, but their overall trends look a bit more bullish. 

The negative sentiment will most likely persist through the rest of the week unless central bankers step in with their speeches to calm the markets. 

Later today, US PPI indices are due along with jobless claims. Those numbers could cause some volatility as well.