The S&P 500 endured heavy losses in the past week following another round of disappointing inflation data.
On Tuesday, the U.S. Labor Department reported an 8.3% rise in the consumer price index in August, exceeding economist estimates of 8% inflation. Following the release of the CPI number, the Dow Jones Industrial Average dropped by 1,276 points on Tuesday, its worst day since June 2020.
On Thursday, President Joe Biden announced a tentative labor agreement to avoid a national railway strike that could have idled more than 7,000 trains and cost the economy up to $2 billion per day. The agreement came a day after analysts at Bernstein downgraded the stocks of Union Pacific and CSX, noting a challenging macroeconomic environment for railroads in the second half of 2022.
Starbucks raised its long-term financial forecast and highlighted elements of its business rejuvenation plan Tuesday at its first investor day event since 2020. Outgoing Starbucks CEO Howard Schultz said the company expects double-digit revenue and earnings growth over the next three years.
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On Friday, the Biden administration released a framework for regulation of the cryptocurrency market that includes provisions to protect investors, promote financial stability and eliminate fraud and illicit activity. Popular cryptocurrency Ethereum completed its long-awaited Merge on Thursday, a conversion from proof-of-work verification to a more energy-friendly proof-of-stake model.