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US Inflation Soars, Triggers Market Jitters
13 May
Summary
- Annual U.S. CPI inflation reached 3.8% in April, highest in three years.
- Real wage growth turned negative for the first time since 2023.
- UK bond yields hit highest since 1998 amid political pressure.
Annual U.S. CPI inflation climbed to 3.8% in April, surpassing expectations and marking its highest level in three years. Consequently, real wage growth has shifted into negative territory for the first time since 2023. This economic backdrop has amplified market concerns, alongside a rebound in oil prices and a surge in U.S. bond yields.
Adding to global market volatility, UK long-term bond yields have reached their highest point since 1998. This financial pressure is linked to political uncertainty following recent local election results, impacting sterling's performance.
In the technology sector, chip stocks experienced a sharp downturn. The Philadelphia Semiconductor index saw significant losses, attributed partly to a speculative surge and broader market fluctuations. Concerns over ownership rights were also raised following updates from AI firm Anthropic.
