S&P 500 futures are still on a sliding path. It could be an advent of the next market crash, because now the slide could be steeper after the strong consumer price index number, that increased 0.8% in April, and 4.2% year-on-year, its fastest pace since 2008. Excluding food and energy, core CPI increased 0.9% in April. Inflation fear could shorten the heights that compelled the US equity indices to test lifetime highs.
Undoubtedly, the growing expectations of investors for a speedy economic recovery is compelling the Covid-generated investor to buy anything at any point in case of a dip. This new breed of investor has constructed a house of cards everywhere in the world.
At the start of the pandemic, relief benefits were put in place so people would not have to venture out to jobs that might expose them to illness and allow them to spread it further. Slower jobs growth pushes that moment further into the future even as concerns increase that the continuing loose monetary policy may fuel inflation or drive up asset prices that will eventually return to earth.
With a steep rise in Covid-19 cases, global supply chain disruption seems to be a secondary concern. The move of people from home to the office could be the primary one due to growing lockdowns to prevent the lots people getting infected from the new emerging strains. Vaccination of the whole population still seems to a dream.
Finally, I conclude that if the S&P 500 futures take a sustainable move below 3,938, it could lead to the advent of the next market crash.
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