It was another crazy day in this week.
CPI numbers in US were out of the expectation totally, financial markets collapsed, US Dollar rallied.
IMF announced strong warning to the China about “DEBT EXPLOSION”
US is considering another Chinese trade sanctions over the Taiwanese issues.
It looks simple but the impact seems too big to take in a single day.
It feels like “Tomorrow never comes…” or “Run… you fools” or “We’re going to die anyway”…
Aug CPI numbers were shocking, month to month CPI was actually 0.1% up, mostly expected 0.1% down.
Annual CPI was 8.3% up from the last Aug, 2021. mostly expected 8.1%.
Core CPI was up from 5.9% to 6.3%.
Adding all these numbers are meaning one thing.
“US FED failed to control the inflation with all those rate hikes so far this year”
And also means “ US FED will raise the rate more than 0.75% next time, because that’s the only way they have”
Markets reacted quickly today.
DJ Index was downed by 3.9%, S&P 500 Index was downed by 4.3% and NASDAQ index was downed by 5.2%.
The biggest one day drop since last Jun, 2020 in percentages.
Apple was dropped by 5.9%, MS was dropped by 5.5%, Amazon was downed by 7.1% and Tesla was downed by 4.1%. Those mega sized high tech companies were losing values the most today.
Because of this unexpected CPI numbers, US Dollar index jumped 1.6% today.
US Dollar Index ended at 109.93 points, up 1.6%. The biggest one day gains since the last March, 2020.