Spooked by Inflation Numbers

Monday, stocks gained 0.6% in Asia, rose slightly in Europe, and gained 1.1% in the U.S. on 10B shares traded. The VIX rose 5% to close at 23.87. The 10-Year U.S. Treasury bond yield gained 3% to close at 3.36. Precious metals rose 2%. Apple closed above its 160 benchmark, and IBM ended above its 130 level.

Tuesday, stocks rose 0.9% in Asia, fell 1.4% in Europe, and plummeted 3.5% in the U.S. on 12B shares traded. The VIX jumped up 14% to close at 27.27. The 10-Year U.S. Treasury bond yield moved up 2% to close at 3.42. Precious metals ended the day down about 1% while their miners dropped four times that amount. The Dow, NASDAQ, S&P 500, and NYSE indices ended below their respective 32,000, 12,000, 4000, and 15,000 benchmarks. Apple and IBM closed below 160 and 130 levels respectively. Investors were spooked by another reality check regarding inflation.

Wednesday, stocks plummeted 3.3% in Asia and declined 0.8% in Europe but gained slightly in the U.S. on 11B shares traded. Core producer prices also moved up sharply for August.

Thursday, stocks fell slightly in Asia, lost 0.6% in Europe, and dropped 0.8% in the U.S. on 11B shares traded. The Dow Jones Industrial Average ended below 31,000.

Friday, stocks fell 1.3% in Asia, 1.6% in Europe, and 1.0% in the U.S. on 17B shares traded. Options expiration triggered higher than usual volume.  Precious metals advanced about 1%. The S&P 500 ended below 3900. Finally, the Federal Reserve balance sheet gained 10B to end the week at 8.83T.

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