Dow futures plummet on hotter-than-expected U.S. inflation data
source link: https://macdailynews.com/2023/02/24/dow-futures-plummet-on-hotter-than-expected-u-s-inflation-data/
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Dow futures plummet on hotter-than-expected U.S. inflation data
Friday, February 24, 2023 8:50 amFriday, February 24, 2023No Comments
U.S. stock futures fell Friday morning as key key U.S. inflation data came in hotter than expected across the board.
Dow Jones Industrial Average futures fell by 380 points, or 1.1%. S&P 500 and Nasdaq-100 futures slid 1.1% and 1.4%, respectively.
The personal consumption expenditures price index excluding food and energy increased 0.6% for the month, and was up 4.7% from a year ago, the Commerce Department reported Friday. Wall Street had been expecting respective readings of 0.5% and 4.4%.
Including the volatile food and energy components, headline inflation increased 0.6% and 5.4% respectively.
MacDailyNews Take: The Fed ludicrously went to a 25-basis point interest rate way too soon. They should have hiked interest rates by 50-basis points in early February and they should do 50-basis points at its next FOMC Meeting in March (21-23).
Again, when certain quarters, including the Fed, delude themselves and others that “inflation is transitory” and waste at least a year before doing a mere portion of what is necessary* (interest rate hikes), the price will be paid for being delusional and late.
Catching up will be difficult. But, hey, good luck on that soft landing. 
– MacDailyNews, September 13, 2022
In January, Interactive Brokers founder Thomas Peterffy said of the U.S. Federal Reserve, “If they really wanted to stop inflation, they would have to raise rates to 4%, 5%, 6%.”
Peterffy may have been too conservative. Rates in excess of 6% may be required at this point. – MacDailyNews, October 13, 2022
‘Tis best to get a handle on inflation, if you know how, while you still can. – MacDailyNews, May 11, 2021
*Stop the misguided crusade against domestic energy production and profligate federal spending and inflation will be stopped dead in its tracks. It’s not difficult. – MacDailyNews, May 11, 2022
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