VIDEO: September CPI Data Reports Higher Than Expected Inflation Despite Fed’s Aggressive Rate Hike Strategy, Markets Swing Wildly

Notwithstanding the Federal Reserve’s Best Efforts to Curb Inflation, Newly Released Consumer Price Index (CPI) Data Reported an Increase of 0.4% in September

As expected, markets reacted terribly to this news, selling off in dramatic fashion before staging a surprising mid-day rally, swinging over 5% to close the trading session up 2.6%.

The United States Department of Labor reported this morning that the Consumer Price Index (CPI) increased 0.4% in the month of September, compared to a rise of only 0.1% in August.

Overall, consumer prices increased 8.2% in the last year, compared to the consensus estimate amongst economists of 8.1%.

Also Read: S&P 500 Losing Streak Hits 6 Days Following Wholesale Inflation Report, Consumer Price Index Data on Deck (VIDEO)

The markets expectedly sold off sharply in early trading before mounting a massive comeback swinging more than 5% to close the day up 2.6%.

Commenting on today’s wild trading session, Michael Contopoulos, director of fixed income at Richard Bernstein Advisors, had this to say:

“There may be some short covering going on, but also, a lot was priced in. There has likely been a fair amount of defensive positioning lately in equities, and on the rates side, higher policy rates means higher probability of a hard landing.”

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