U.S inflation surged 6.8% in November 2021, its fastest pace since 1982. U.S stock markets reacted well.
More details🧐 All three major U.S. stock indexes, the S&P 500, Nasdaq & the Dow Jones advanced last Friday following inflation figures that came in line with expectations. The S&P 500 even hit an all-time closing high.
Why is this important🤔 Fed Chair Jerome Powell had said that “inflation is likely to go up before it goes down”. Consistent with this statement, November’s inflation rates are certainly high, but they somewhat expected. It’s a good sign when there’s consistency between the Fed’s claims & reality.