The major US equity averages closed the week lower, posting their first losing week in six, after the hottest US inflation report in 30 years. The Dow fell 0.6%, the S&P 500 dipped 0.3% and the Nasdaq Composite inched down about 0.7% on the week. Tesla had its worst week since March 2020 (-16%) as Musk dumped billions of dollars of stock. European stocks end the week higher despite inflation worries.
The US October consumer price index released Wednesday showed inflation at its hottest pace in more than 30 years, sending bond yields higher and hitting growth pockets of the equity market. Short term interest rates shifted notably more hawkish this week with the market now pricing in a full rate-hike by July and over 2.5 hikes by Dec 2022. That flattened the yield curve dramatically, prompting many to discuss the rising potential for a Fed policy error.
Cryptos ended the week higher, but off their record highs reached mid-week. Gold surged to its best week since May but silver had an even bigger gain on the week, while oil ended lower again.
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