Stocks Look to Snap Five-Day Losing Streak

Through Friday, the stock market fell for five days in a row. It’s up so far today, but it’s still early. The big news will come tomorrow when the government releases the inflation report for August.

Markets are on tenterhooks for critical U.S. inflation data that could buffet stocks and bonds if they shift expectations about Federal Reserve stimulus withdrawal and the timing of interest-rate hikes.

A backdrop of slower reopening in pandemic-stricken economies due to the delta strain, and price pressures stoked by supply snarls led to declines in both global stocks and Treasuries last week.

Some measures of producer prices released Friday topped expectations, with a gauge of final demand jumping 8.3% year-over-year amid persistent disruptions in supply.

The U.S. economy also has to deal with a rash of shortages. It seems like there are shortages of everything.

Shortages of metals, plastics, wood and even liquor bottles are now the norm.

The upshot is a world where buyers must wait for delivery of items that were once plentiful, if they can get them at all. Rash has piles of tents she can’t ship because she can’t get the right aluminum tubing for their frames, for instance, while others lack the right zippers.

Along with the shortages come hefty price increases, which has fueled fears of a wave of sustained inflation.

Posted by on September 13th, 2021 at 9:57 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.