📉 Stocks fell sharply Tuesday after a key August inflation report came in hotter than expected:
Twitter shareholders voted in favor of Elon Musk's $44 billionThe vote arrives as the billionaire seeks to back out of the deal. Musk has called into question the number of fake accounts on the platform claiming that the number of these phony accounts is higher than what Twitter has disclosed. Meanwhile, the social media company has stuck to its calculation that less than 5% of monetizable daily active users are fake or spam.
"It's certainly taking some time to filter into the data, and it is a show-me market. Is it a show-me Fed? I guess we'll see. I think it probably is," Schutte said. They announced the change after the August consumer price index came in up 0.1%, while economists polled by Dow Jones had expected a decline of 0.1%. The Nomura economists said"the broad-based strength across both monthly core goods and core services inflation – suggests a series of upside inflation risks may be materializing.""Beyond September, we continue to expect a 50bp hike in November, but now anticipate another 50bp hike in December, 25bp higher than our previous forecast.
The spread between the 3-month yield and the 10-year Treasury also narrowed, reaching a low of 1.03 – and the lowest level since Aug. 30 when the spread was as low as 0.49. The spread between the 3-month and the 10-year rates are a key indicator that the New York Federal Reserve watches closely to measure the likelihood of a recession.
Shortly after the open, the Cloud ETF was led lower by Braze , and declines of 9% or more from BigCommerce, Fastly, Cloudflare and Toast.Bitcoin tumbles with the broader market following CPI data, just after hitting a recent high "Today's CPI reading is a stark reminder of the long road we have until inflation is back down to earth," said Mike Loewengart, head of model portfolio construction at Morgan Stanley."Wishful expectations that we are on a downward trajectory and the Fed will lay off the gas may have been a bit premature."
"In terms of the Fed, this feels like it absolutely locks in 75 for the September meeting but maybe increasing the risk for 100, though that's not the base case," Dent said."People will have to consider that they could raise 75 basis points in November, given how strong this report is," Dent said, referring to the miserable August inflation numbers.
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