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The Bull's big test: Can rally resume amid inflation worries?

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Wall Street drops as strong April inflation data fuels rate hike bets


Wall Street s major averages fell on Wednesday after stronger-than-expected inflation data stoked fears of tighter monetary policy to combat a possibly longer period of inflation.
The Labor Department s data showed U.S. consumer prices increased by the most in nearly 12 years in April as booming demand amid a reopening economy pushed against supply constraints. Excluding the volatile food and energy components, it soared 0.9%, the largest gain since April 1982.
U.S. money markets moved fully to price in a 25 basis point interest rate hike by December 2022 after the data.
There is uncertainty over how long inflation is going to exist within the current economic recovery because we can see increases in housing prices, commodities around the world and increase in demand for goods and services, Brian Vendig, president, MJP Wealth Advisors in Westport, Connecticut. ....

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