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CPI Rises Unexpectedly

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Market Overview
Read time 1.4 minutes

Year To Date Performances:

Dow Jones  37,592.98 -0.32%
S&P 500  4,783.83 0.86%
Nasdaq  14,972.76 1.40%
Russell 2000 1,950.96 -3.07%
TSX  20,990.22 0.57%
Bitcoin $42,244.90 -0.10%
Ethereum $2,508.65 9.98%
US to Canadian Dollar $1.34 1.16%
  1. In December, U.S. consumer spending saw an unexpected rise, fueling ongoing inflation concerns. The consumer price index (CPI) climbed 0.3% monthly, surpassing forecasts, and showed a 3.4% annual increase, higher than projected. This annual rise contrasts with December 2022's 6.4% increase. Core CPI, excluding food and energy, also grew by 0.3% monthly and 3.9% annually. Key contributors to this rise included shelter costs, food prices (notably eggs), energy, airline fares, motor vehicle insurance, medical care, and used vehicle prices.

  2. Tesla's stock fell following recent price reductions in China for its Model 3 and Model Y vehicles, along with the announcement of a temporary halt in production at its Berlin factory due to disruptions in the Red Sea. This is the latest in a series of price cuts in China since late 2022. These reductions have led to competitive responses from other car manufacturers, impacting industry-wide profit margins. The slowdown in China's EV market growth and intense competition from Chinese automakers like BYD Co. contribute to Tesla's challenges. Additionally, Tesla's Berlin factory faces a production pause due to supply chain adjustments in response to regional security concerns.

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  4. Headlines

    1. Oil prices are rising due to the rise in conflicts in the Middle East.

    2. Citigroup has announced 20,000 jobs cut.

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