The Dollar Strikes Back

The US inflation data publication was the main event yesterday. The markets were really scared of this. According to Bank of America, mentions of inflation in corporate income statements were up 800% from a year ago. And search interest in inflation, according to Google Trends, is at its highest.

As a result, the worst fears became reality. Consumer inflation in the United States reached its highest level since April 2008 (4.2% year-on-year). And the core CPI, which excludes food and energy prices, rose 0.9% from the previous month, the largest monthly increase since the early 1980s.

Markets, of course, rushed to revise their estimates on the timing of the Fed's rate hike, the yield on US Treasury bonds shot up, the stock market went down, the dollar in the foreign exchange market struck back at all offenders for the disastrous NFP figures. In general, everything happened very logically.

In general, buyers in the US stock market should strain. It is possible that hard times are just beginning for them. Yesterday, for example, a flash crash occurred in the Taiwan stock market, with the Taiex Index falling 9.8% during the day (the worst daily performance in its 54-year history). Insanely inflated quotes against the background of active use of leverage is an extremely explosive mixture. But in the United States, the nature of price increases is by and large the same.

However, the markets are still far from returning to common sense. What is at least the growth of a new token called "Internet Computer", which in just a couple of days from the moment of its launch received a capitalization of $45 billion and took 8th place in the cryptocurrency market by this parameter.