ASX opens lower as Wall Street shakes

Wall Street fears the Fed will put the brakes on the economy too much, triggering a recession. This week’s inflation update may give more clarity on whether the Fed will remain aggressive.

The Federal Reserve Bank of New York released a survey of consumer expectations from July on Monday, showing that inflation expectations for everything from food and gas to house prices have dropped “significantly.”

The Labor Department will release its July report on consumer prices on Wednesday and its report on wholesale prices on Thursday.

This week’s inflation update follows last week’s report that the job market remains strong. While this is good for the economy, it complicates the job of the Fed and may force it to continue aggressive rate hikes aimed at cooling the economy and accelerating inflation.

Investors are still weighing the latest round of corporate earnings, which could also provide more detail on how inflation is hurting consumers and businesses. Nvidia fell his 8.4%, the biggest drop in the S&P 500. That’s after warning investors that second-quarter revenue will fall short of expectations due to weaker gaming revenue.

ASX opens lower as Wall Street shakes

Source link ASX opens lower as Wall Street shakes

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