CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open an account
✖

US open: Stocks tumble as inflation unexpectedly rises

Article By: ,  Senior Market Analyst
June 10, 2022 2:26 PM

US futures

Dow futures -0.8% at 32000

S&P futures -1% at 3979

Nasdaq futures -1.23% at 12113

In Europe

FTSE -1.736% at 7385

Dax -1.1% at 14036

Euro Stoxx -1.4% at 3640

 

CPI rises, core CPI falls less than expected

After steep losses in yesterday, stocks are in freefall today after inflation unexpectedly rose in May. CPI came in at 8.6% YoY, up from 8.3% in April and defying expectations of 8.3%. Core inflation fell to 6% from 6.2% but was still above forecasts of 5.9%.

Following the data, stocks, particularly tech stocks tanked lower and the USD moved higher. The market movements suggest that investors expect the Fed to act more aggressively to bring inflation down.

This was not the result that the market was looking for and the idea of passing peak inflation remains elusive for another month. It is looking like inflation will remain steady around these elevated levels before we start to see any significant fall. Given the high that commodity prices, particularly in the energy complex, continue to rise, perhaps this isn’t that unsurprising.

The data comes after indices sold off sharply yesterday after the ECB signaled that it will start hiking interest rates next month with 25 basis points but could raise rates by 50 basis points in September. The RBA surprised the market with a 50-basis point hike earlier in the week. Central banks are prepared to act aggressively to rein in inflation.

The Michigan consumer confidence data is also scheduled for later today and will provide insight into how the consumer is holding up as inflation remains stubbornly high. Signs that the consumer is struggling could unnerve the markets.

In corporate news:

DocuSign falls 25% pre-market to a 32-month low after missing quarterly earnings expectations and lowering its outlook. The firm had previously warned that the return to pre-COVID working conditions could cut its business.

 

Where next for the S&P?

The S&P 500 has broken out of its recent range. The price broke below support at 4070, the weekly low and the 20 sma, which combined with the RSI heading lower suggest that there could be more downside to come. A break-through support at 4000 the psychological level could lead to a deeper selloff towards 3865 the May 12 low and 3810 the 2022 low. It would take a move over 4190/4200 the June high 50 sma to create a higher high and rise towards 4300 the May high.

FX markets – USD rises, EUR falls

USD is climbing higher following the hotter than expected inflation data. The data fueled bets that the Fed could go harder and faster on raising rates.

EUR/USD is extending losses after yesterday’s ECB rate announcement. The central bank slashed the bloc’s growth outlook and raised its inflation forecast. Today the Bundesbank cut Germany’s GDP outlook and raised its inflation forecast. There are growing concerns over fragmentation within the region.

GBP/USD is falling for a third straight session amid growing concerns of rising inflation and slowing growth. The BoE/Ipsos latest quarterly survey revealed that the public sees inflation rising to 4.6% over the next 12 months, up from 4.3% expected in February’s survey. The pound was unimpressed by PM Boris Johnson’s comments that he will cut taxes sooner rather than later to help households struggling in the cost of living crisis.

GBP/USD  -0.4% at 1.2440

EUR/USD  -0.27% at 1.0595

Oil set for 7th weekly gain

Oil prices are on the rise, with Brent looking at a fourth straight week of gain whilst WTI crude oil is set for the seventh straight week of gains. The black stuff has rallied over 20% since mid-April, taking the price to three-month highs on tight supply and rising US demand, which is overshadowing COVID concerns ion China.

The peak summer driving season in the UK has seen gasoline stockpiles fall by more than expected and petrol prices reach $5 a gallon.

In addition to the usual Russia, tight supply story, concerns of reduced supply in Norway were also lifting the price. Workers at Norwegian Oil & Gas Association were threatening to go on strike in pay negotiations fail.

Oil prices had started the day around $1 lower after fresh lockdown restrictions in Shanghai owing to more COVID. China’s crude oil imports were up some 12% yoy, but this was when they were already low.

 

WTI crude trades +0.7% at $120.34

Brent trades +0.7% at $122.9

 

Looking ahead

18:00 Baker Hughes rig count

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation.

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

StoneX Europe Limited is registered with the German Federal Financial Supervisory Authority (BaFin). BaFin registration ID: 10160255

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

The statistical data and the awards received refer to the Global FOREX.com brand.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

Additionally, StoneX Europe Ltd is allowed to provide Investment and Ancillary Services to the following non-EU jurisdiction: Switzerland.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

Tied Agent Information: KQ Markets Europe Ltd with Company No. HE427857.
Address: Athalassas 62, Mezzanine, Strovolos, Nicosia Cyprus.
Services Provided: Reception and Transmission of Orders.
Commencement Date: 06/12/2022
Website: KQ Markets - CFD Trading | KQ Markets

We may pay inducements, such as commissions or fees, to affiliates or third-party introducers for referring clients to us. This is in line with regulatory guidelines and fully disclosed where applicable.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

© FOREX.COM 2025