China Daily, September 14th. Although the overall "inflation pace" of the United States slowed down for the second consecutive month, prices remained high in August. The news put the US stock market in chaos, with the Dow falling nearly 1,300 points. Data shows that the total market value of US stocks lost about US$2.36 trillion (about 16.34 trillion yuan).
The U.S. Department of Labor announced Tuesday that its August consumer price index (CPI) rose 8.3% from the same period last year, down from 8.5% in July and 9.1% in June, the highest level in 40 years.
As American shoppers face high prices for daily goods and services
Dollar stores in Alhambra, California began selling frozen food (source: the guardian)
U.S. stock markets hit their biggest single-day decline in two years on Tuesday, with investors selling from stocks, bonds to oil and gold. All 11 stocks in the Dow Jones Index, , fell, and all 11 stocks in the S&P 500 Index, , also weakened.
Dow Jones Index fell 1276.37 points, or 3.9%, to 31,104.97 points. The S&P 500 fell 177.72 points, or 4.3%, to 3932.69 points. Nasdaq Composite Index fell 632.84 points, or 5.2%, to 11,633.57 points. All three indexes of
have recorded their biggest single-day declines since June 11, 2020. Dow Jones Industrial Index has fallen 14% since 2022, the S&P 500 has fallen 17% and the Nasdaq Composite has fallen 26%.
Although the overall inflation rate has slowed down, the inflation rate is still at a level not seen in four years. High inflation not only makes the cost of living "high", but the risk of a US recession is also greatly increasing.
Feder Chairman Jerome Powell warned last month that the Fed will use various means to lower prices and that households and businesses will face some pain. This shows that he expects Fed policies to slow job growth and spending. U.S. businesses expect economic growth to remain weak at the end of the summer as consumers and businesses face high inflation, tight labor market and economic uncertainty. "We think there may be a lot of weakness in prices at this stage," said Holly MacDonald, chief investment officer of Bessemer Trust. "We think there may be a lot of weakness in prices at this stage." Chris Shipley, chief investment strategist of North America in North America, said. "If the Fed does not take more significant actions to deal with inflation, an economic recession is coming."
compiled by Cao Yuanqing Li Haipeng
Source: China Daily Network
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