Thursday's Market Minute: Markets Weighed Down By Sticky Inflation

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U.S. stock futures are lower Thursday morning, continuing a sell-off on Wall Street that has pushed the S&P 500 (SPX) to its lowest level since early 2021. Year-to-date, all four of the major stock indices are down by double digits, with the Dow Jones Industrial Avg. ($DJI) experiencing the least declines around 13%.

The tech-heavy Nasdaq-100 (NDX) has fared the worst, losing nearly 27% in 2022 as rising interest rates and an otherwise volatile market have pushed investors to continue selling riskier assets.

A large part of that volatility stems from persistently elevated inflation. Consumer prices in April jumped 8.3% year-over-year, which was more than expected. Increases in the indexes for shelter, food, airline fares, and new vehicles were the largest contributors; however, the energy index declined in April after rising in recent months. Prices at the wholesale level were also higher than expected in April as the Producer Price Index (PPI) rose 11.0% versus the 10.7% consensus.

Until inflation cools off and markets rebound, investors and traders alike are having to be more cautious, and in the meantime, the TDA Network will be covering all the latest market news one needs to know.

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This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.