- July 14, 2022
- Posted by: Stratford Team
- Category: Economy
Stocks dropped, government bonds sold off and the dollar ripped higher on Thursday, as red-hot inflation in the world’s largest economy fuelled expectations of larger US interest rate rises.
Futures contracts tracking Wall Street’s S&P 500 fell 1.2 per cent, after the broad index closed 0.5 per cent lower on Wednesday. Contracts tracking the technology-heavy Nasdaq 100 slumped 0.8 per cent. Europe’s Stoxx 600 share gauge dropped 1.2 per cent, taking its year-to-date losses to more than 16 per cent.
US consumer prices increased by their most in 40 years last month, a report from the Bureau of Labor Statistics showed on Wednesday, with the annual rate of inflation topping economists’ forecasts to hit 9.1 per cent.
Those data fuelled expectations of a much larger interest rate rise from the US Federal Reserve when it meets at the end of July. Futures markets are now pricing the possibility of a 1 percentage point increase by the Fed, after it…
