Stock Market Today: Stubborn Inflation

September 13, 2022, 12:16 pm EDT

Stubborn Inflation

Stubborn inflation Consumer Price Index (CPI) stayed at 8.3% for the August reading. Visually, there is not much improvement when looking at the chart. Although the crude oil price came down a bit, it does not help the 40-years high level of inflation. 

The stock market returned most of the gains accumulated in the past 4 sessions by falling -840 in Dow Jones and -3.8% in the Nasdaq index. 

Not only is the drop in price actions, but the previous mega leaders also suffered badly that they are nearly making a new low: META, GOOGL, NVDA. 

Definitely, it is a signal that a new low is coming on the way. 

All-red color in the industry map also shows that trouble is widespread almost everywhere. Only a few agriculture-related stocks are able to hold: CVTA, MOS, CF. Most likely, it forecasts a food shortage or higher food prices due to wars, inflation, and extreme weather. 

It would be reasonable to expect a much worse sell-off in the next few months. Thus, staying defensive in the portfolio is the best strategy. 

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