681 days ago • Posted by Paul de La Baume
US #PPI surges in May. #stocks steady, technically oversold. #inflation #investing #markets $QQQ $SPY
Wholesale prices rose 10.8% in May, near a record annual rate. As highlighted last Friday, a surge in energy prices in May compared to a year ago is a major contributor to inflation across various contributors to readings. Excluding food and energy, PPI rose 0.5% on the month, below the 0.6% forecast. Stocks are slightly up on the news. Notes from major US banks point out that it is too early to jump in to buy stocks tactically. Nonetheless, sentiment can change quickly, and depend on the Fed / FOMC outcome on Wednesday, markets could take a turn for the better. The consensus is for markets to continue lower, after breaking technical support levels. A contrarian perspective suggests markets could be in the process of capitulating as sellers' exhaustion sets in after the S&P500 has erased a staggering 9% in the space of 3 days, entering a bear market (-21.5% year-to-date).
