Inflation indicators exceeded expectations again! In May, the U.S. PPI increased by a large 6.6% year-on-year, setting a historical record. Just a few days ago (June 10th), the U.S. released May inflation data, with CPI increasing by 5% year-on-year, far exceeding expectations. However, the market seemed relatively calm in response, with risk assets briefly falling before strengthening again, leading the U.S. stock market to once again reach new highs. Why did the market react so calmly to the unexpectedly high U.S. CPI data? Is the inflation pressure in the U.S. indeed just temporary, not something to be overly concerned about?
Overall, the inflation pressures between China and the U.S. this time may be diverging. If U.S. demand recovers quickly but supply recovery faces certain bottlenecks, it may mean that this round of U.S. inflation increase is not one-off, but sustained. The inflation center may also significantly rise overall and continue to exceed market expectations.
Dear Mooers, will the U.S. stock market continue to reach new highs?
Let the inflation in the USA fly a little longer~
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