S&P 500 Suffers Big Weekly Loss as Investors React to More Discouraging Inflation Data – Aurora Cannabis (NASDAQ:ACB), Ethereum (ETH/USD)
The SPDR S&P 500 ETF Trust TO SPY suffered heavy losses this week after another round of disappointing inflation data.
On Tuesday, the US Department of Labor reported an 8.3% rise in the consumer price index in August, beating economists’ estimates of an 8% inflation. Following the release of the CPI number, the Dow Jones Industrial Average fell 1,276 points on Tuesday, its worst day since June 2020.
Thursday, the President Joe Biden announced a tentative labor deal to avert a national rail strike that could have idled more than 7,000 trains and cost the economy up to $2 billion a day. The deal came a day after Bernstein analysts downgraded shares of Union Pacific Corporation UNP and CSX Corporation CSXnoting a difficult macroeconomic environment for the railways in the second half of 2022.
Starbucks Corporation SBUX raised its long-term financial forecast and highlighted elements of its business rejuvenation plan during its first Investor Day since 2020 on Tuesday. Outgoing CEO of Starbucks Howard Schultz said the company expects double-digit revenue and profit growth over the next three years.
On Friday, the Biden administration released a regulatory framework for the cryptocurrency market that includes provisions to protect investors, promote financial stability, and eliminate fraud and illicit activity. popular cryptocurrency Ethereum ETH/USD Thursday completed its long-awaited merger, a conversion from proof-of-work verification to a more energy-efficient proof-of-stake model.
Delivery failed: FedEx Corporation FDX Shares traded lower on Friday after the delivery giant reported fiscal first-quarter profits and revenue losses, citing weak global shipping volumes.
Investors will receive more quarterly earnings reports in the coming week from Aurora Cannabis Inc. ACB tuesday, GeneralMills, Inc. GIS and Lennar Company LEN on Wednesday and Costco Wholesale Corporation COST Thursday.
At least 240 S&P 500 companies mentioned ‘recession’ in their second-quarter earnings calls, according to to FactSet.
Economic figures: Following the disappointing CPI reading, investors will receive further key economic updates on Tuesday when the People’s Bank of China announces its latest interest rate decision and on Wednesday when the Federal Reserve releases its own interest rate decision. interest rate and accompanying commentary.
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