population will likely lead to greater prevalence of osteoporosis. Rapid growth in the disease burden is projected among nonwhite populations. Total fractures were >2 million, costing nearly $17 billion in 2005. Treasury yields pulled back a bit from their initial, early-morning leaps, lessening a bit of the pressure on stocks.This study predicts the burden of incident osteoporosis-related fractures and costs in the United States, by sex, age group, race/ethnicity, and fracture type, from 2005 to 2025. Quincy Krosby, chief global strategist at LPL Financial, said, “There’s a view that because CPI is a lagging indicator, the higher rates will increasingly slow down the economy and inflation will recede at a faster clip.” “There’s definitely that thought process coming in.”
“If you’re at least starting to see headline CPI cool, there’s hope that core CPI will follow,” Hooper said. The overall Consumer Price Index, also called CPI, was 8.2% higher in September than a year earlier, versus August’s 8.3% inflation. Even though what’s called “core” inflation accelerated last month, overall inflation including food and energy prices slowed by a touch.
YEAR WALK JOURNAL FULL
But higher rates take a notoriously long time to take full effect, and the Fed risks causing a recession if it ends up going too far.Īs the day progressed, and investors had more time to dig into the inflation report’s details, though, analysts said they perhaps saw some glimmers of hope. Higher rates make buying a house, car or anything else purchased on credit more expensive, and the hope is that will slow the economy and job market enough to undercut inflation. The federal funds rate started this year at virtually zero. Bets increased for the Fed to pull its overnight rate above 5% by early next year.
Most investors came into the morning already expecting the Fed to hike its key overnight interest rate by three-quarters of a percentage point next month, which would be its fourth straight hike that was triple the usual size.īut Thursday’s disappointing data caused some investors to expect a fifth such increase in December, dashing hopes that the Fed may begin downshifting soon. “It’s nonsensical to me that the market would be up so strongly,” she said. Young noted that the drop in the dollar relative to other currencies, like the British pound, could be a tailwind for stocks, but not enough to cause such a sharp turnaround in the market. “Markets have talked themselves off a ledge, so to speak, and they’re a bit more hopeful,” said Kristina Hooper, chief global markets strategist at Invesco. “Hopefully it’s because people have dug into the details of the inflation report and noticed a few signs that we could get inflation relief by the end of the year,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments. Others said technical reasons could also be helping to support markets, as some investors closed out of trades betting on declines following the inflation report. They’re the latest jagged, back-and-forth moves for markets, which have been swinging sharply due to all the uncertainties about economies around the world and how badly higher interest rates will hurt them.Īnalysts said some data points buried deep within the inflation report may be offering hope that inflation is on its way to marking a peak and then easing, even though current conditions look dour. dollar against other currencies sank after initially jumping. inflation data, while Treasury yields pulled back a little from their initial surge. Stocks in Europe also flipped from losses caused by the U.S. “I literally can’t even wrap my head around what the logic would be to buy (stocks) on any change in Fed policy.” “Anybody who had a hope of a pivot or a pause or a slowing in Fed policy tightening for the next meeting, that’s been dashed today,” said Liz Young, chief investment strategist at SoFi. Smaller company stocks also rallied after an initial slide.
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