Inflation worries dampen expectations, Cathie Wood says, Schiff calls out Wall Street for swallowing narrative amid price surge – Invesco QQQ Trust, Series 1 (NASDAQ: QQQ), SPDR S&P 500 (ARCA: SPY)

Although the core inflation rate showed signs of slowing year-on-year in December, reaching 3.2%, lower than the expected 3.3%, both short-term and long-term inflation expectations reached 3.3%, putting consumer confidence under new pressure.

“Consumers are worried about both short-term inflation expectations next year and long-term inflation expectations over the next three to five years, both of which will rise to 3.3%,” he said. Kathy WoodCEO Ark Investmenthighlighting the impact on consumer expectations.

The overall consumer price index increased 2.9% year-on-year in December, higher than the 2.7% increase in November, rising for the third consecutive month and the highest increase since July. Energy costs played a significant role, with the index rising 2.6% and accounting for more than 40% of December’s monthly price gains.

Peter SchiffChief Economist euro pacific co.warned of potential economic pressure, noting that “CRB rose another 1.6% to hit a 17-year high and is up 21% in the past four months, while oil prices surged nearly 4% to close at $80.41.”

The CRB Commodity Index is currently at 370.7, having reached a record high of 470.17 in July 2008.

See Also: Bitcoin, Ethereum, Dogecoin Rebound on Positive Inflation Data, Trump’s Cryptocurrency Moves: Analysts Predict BTC Could Break $200,000 Range in 2025

Financial markets reacted positively to the mixed data, with Treasury yields falling sharply. Mohamed ElyanChief Economic Advisor Allianzobserved “a sharp decline in yields across the developed world today” and attributed this to better-than-expected U.S. inflation data.

However, the former Finance Minister Larry Summers Concerns about fiscal stability were raised, noting that “the yield on the 5-year Treasury note has reached 5%, while real yields over the same period have been above 2.6%,” indicating concerns about future budget deficits.

this SPDR S&P 500 ETF Trust spy rose 1.82%, while Invesco QQQ Trust QQ up 2.30%. this Financial Select Sector SPDR Fund XLF Leading the sector’s gains, major banks rose 2.55% after reporting strong fourth-quarter profits.

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