Stocks Dip on Inflation Fears; Cryptos Follow Suit
The US market faced another day of decline as investors grappled with the latest inflation data. The Dow Jones lost 65 points, echoing the week’s weakening trend.
The S&P 500 and Nasdaq Composite also fell by 0.4% and 0.5%, respectively. This decline came after the release of July’s core PCE inflation index, which climbed to 2.9%, up from 2.6% previously.
- Bitcoin and ethereum prices decreased along with other risk assets.
- the market had been bullish earlier, buoyed by a robust economy.
- However, enthusiasm faded post the Federal Reserve’s Jackson Hole meeting.
Fresh data from the Commerce Department indicated steady interest in July’s PCE index.But the core PCE, excluding food and energy, revealed a notable price hike—the highest since February.
Despite inflation concerns, Wall Street analysts remain optimistic. They predict a Federal reserve rate cut in September, following Jerome Powell’s reassurance at the Jackson Hole event.
Looking ahead, the Dow Jones anticipates a 2.2% increase in August. The S&P 500 aims for a 2% rise, targeting a monthly close above 6,400. Analysts project further growth for the S&P 500 in 2025 and 2026.
while current figures show a dip due to inflation worries, the market’s long-term outlook remains strong.
