The S&P 500 index fell 2.4% last week on concerns about inflation and monetary tightening.
Last week’s slide came as data on consumer and producer prices added to investor worries about inflation.
The data showed consumer prices rose 8.3% on an annual basis in April, down slightly from March’s 8.5% annual rate, but high enough to concern investors. The core consumer price index, which excludes food and energy due to their volatility, was up 6.2% on an annual basis.
Producer prices, meanwhile, jumped 11% year over year in April, with core PPI up 8.8%, the Bureau of Labor Statistics said.
Amid concerns about how the US economy may be impacted by the monetary tightening being done in an effort to tamp down on rising prices, the inflation data sent almost every sector into the red.
Real estate had the largest percentage drop of the week, down 3.9%, followed by a 3.6% slide in financials, a 3.5% drop in technology and a 3.4% slip in consumer discretionary. Just one sector managed to avoid ending the week in the red: consumer staples, which eked out a 0.3% increase.
Retailers including Home Depot (HD), Walmart (WMT), Lowe’s (LOW), Target (TGT) and Foot Locker (FL) will report next week. Other companies expected to release quarterly results this week include Cisco Systems (CSCO) and Deere (DE).
Economic data expected this week include retail sales, building permits, housing starts and existing home sales for April.
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