S&P 500 Smashes All-Time High—Even as Inflation Throws a Wrench in the Works
Wall Street's flagship index just laughed in the face of economic gravity.
The S&P 500 punched through another record high this week—proving once again that markets move on hopium more than fundamentals. Never mind that pesky inflation report showing prices still running hotter than a crypto trader's GPU.
Here's how the financial paradox plays out: The Fed's 'higher for longer' rate mantra? Apparently just background noise. Consumer spending power getting eroded? Just buy the damn dip. Traditional valuation models? More like ancient hieroglyphics.
Meanwhile in crypto-land: Bitcoin holders are nodding sagely at this display of market irrationality. After all, we wrote the playbook on ignoring macro warnings while chasing green candles.
Closing thought: Maybe stocks are just catching up to crypto's detachment from reality. Or maybe—just maybe—the entire financial system runs on collective delusion. But hey, as long as the numbers go up, right?
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The S&P 500 has completely shrugged off a higher-than-expected inflation report released this morning as the rally shows no signs of faltering.
Fed’s Preferred Inflation Gauge Tallies in at 2.7%
May’s Core personal consumption expenditures (PCE), which measures the prices that consumers pay for goods and services, grew by 0.2% month-over-month (MoM) and 2.7% year-over-year (YoY). Economists were expecting 0.1% and 2.6% growth, respectively. On top of that, April’s core PCE was revised upward to 2.6% from 2.5%.
Core PCE is the Fed’s preferred gauge of inflation and excludes volatile food and energy prices from the PCE index. The PCE index increased by 0.1% MoM and 2.3% YoY, both of which were in line with their estimates.
The S&P 500 is up by 0.58% at the time of writing.
