This week is off to a rocky start on Wall Street as the markets continued their downward spiral with more negative inflation news on Tuesday.
As the U.S. digests the release of new inflation data on Tuesday, the stock market finished the trading day sharply in the red. Tech stocks such as Apple and Google led the decline on Monday, with further losses extending into Tuesday. As the yield on the 10-year Treasury note rose 12 basis points, its highest level since March 2019, the NASDAQ slipped 1.4%, with the S&P 500 and Dow Jones Industrial both following suit. Losses were not only seen on Wall Street as the cryptocurrency world also took a severe hit on Monday, with Bitcoin falling under $40,000, a price that many experts previously regarded as its new support level. Following Bitcoin’s lead, many Altcoins also suffered a significant loss. Over recent months we have seen Bitcoin rise slightly upon negative inflation news as investors begin to shift their finances into what they feel is a “safer” option, less affected by the stock market and bonds. It remains to be seen if Tuesday’s numbers will drop prices further or fuel a reversal of the bearish trend, but one thing is certain — investors are worried.
The Monday and Tuesday sell-off may extend into the remainder of the week following March’s less-than-favorable inflation data. Consumer prices rose at an annual rate of 8.5% last month, surpassing February’s 7.9% reading. At the White House Press Briefing on Monday, Press Secretary Jen Psaki had little comfort to offer the American people. She predicted that the data due out tomorrow would be “extraordinarily elevated” before pivoting away and blaming poor domestic economic performance on the White House’s so-called “Putin Price Hike .” With no end to the red-hot inflation in sight, people across the country are beginning to feel the pinch as gas costs rise and 401(k) plans shrink.
Recent polling suggests that voters are increasingly concerned about their bottom line and overwhelmingly listing the economy as their top issue heading into the 2022 midterm elections.
Continuing to blame domestic inflation on an international conflict isn’t realistic. Consumers are experiencing record-breaking price hikes at the gas pump and grocery store, while their 401(k)s and retirement plans are also suffering. If the Biden administration and congressional Democrats wish to hold onto their majority, they need to take action to bring inflation under control.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.