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SPDR S&P 500 ETF (ETF:SPY) - 'I'm Playing A Bit Of Defense': Experts React To 4.2% CPI Inflation


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SPDR S&P 500 ETF Trust (NYSE: SPY) traded lower by 1.7% on Wednesday after the U.S. Consumer Price Index rose 4.2% in the month of April, its largest increase since September 2008.
April’s inflation increase exceeded consensus economist estimates of 3.6%.
Fed Not Alarmed: Federal Reserve vice chairman Richard Clarida said investors should expect inflation numbers to temporarily rise further in coming months as the U.S. recovers from the pandemic. However, Clarida said inflation should moderate in the second half of 2021.
“These one-time increases in prices are likely to have only transitory effects on underlying inflation, and I expect inflation to return to or perhaps run somewhat above our 2% longer-run goal in 2022 and 2023,” Clarida said. ....

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