🚨 Inflation is once again a major headache for US companies! It was mentioned 820 times on S&P 500 earnings calls, the highest level in more than two years!
US companies are really starting to feel uneasy this time.
According to Bloomberg, inflation-related terms were mentioned 820 times during October earnings calls by S&P 500 companies, a monthly high since February 2024.
Why are companies suddenly worried about inflation again?
Put simply, costs are quietly creeping up again!
Rising oil prices are making raw materials like fuel, fertilizer, and plastic more expensive. Airlines are facing higher operating costs, and packaging goods is costing more too. General Motors even expects higher prices for commodities, logistics, and memory chips to put around $2 billion in additional pressure on the company this year.
More notably, even the banking industry has started talking about inflation more often. The Wells Fargo CEO bluntly said that the longer high inflation and high interest rates persist, the greater the strain on consumers and businesses.
And November has only been underway for a week, yet inflation has already been mentioned on earnings calls far more often than during all of last November!
🧠 My take: This is what the market really needs to watch out for.
The biggest problem with inflation isn't that prices rise once—it's that they don't come back down. If inflation picks up again, the Fed may delay rate cuts even further, and markets could start worrying again that high interest rates will stick around for longer.
For crypto markets, this is absolutely not a signal to ignore.
Cooling expectations for rate cuts could put a squeeze on market liquidity, and risk assets like BTC and ETH could come under selling pressure.
⚠️ I’ll be keeping a close eye on inflation data and expectations for Fed policy. Don’t just fixate on the candlestick charts—sometimes the force that really determines where the market goes is the hand behind the macroeconomy!
Remember: If inflation doesn’t leave the stage, rate cuts won’t come easily; and without ample liquidity, it’ll be hard for crypto to make a major move! 🔥$KOMA $IDOL $AIOT
US companies are really starting to feel uneasy this time.
According to Bloomberg, inflation-related terms were mentioned 820 times during October earnings calls by S&P 500 companies, a monthly high since February 2024.
Why are companies suddenly worried about inflation again?
Put simply, costs are quietly creeping up again!
Rising oil prices are making raw materials like fuel, fertilizer, and plastic more expensive. Airlines are facing higher operating costs, and packaging goods is costing more too. General Motors even expects higher prices for commodities, logistics, and memory chips to put around $2 billion in additional pressure on the company this year.
More notably, even the banking industry has started talking about inflation more often. The Wells Fargo CEO bluntly said that the longer high inflation and high interest rates persist, the greater the strain on consumers and businesses.
And November has only been underway for a week, yet inflation has already been mentioned on earnings calls far more often than during all of last November!
🧠 My take: This is what the market really needs to watch out for.
The biggest problem with inflation isn't that prices rise once—it's that they don't come back down. If inflation picks up again, the Fed may delay rate cuts even further, and markets could start worrying again that high interest rates will stick around for longer.
For crypto markets, this is absolutely not a signal to ignore.
Cooling expectations for rate cuts could put a squeeze on market liquidity, and risk assets like BTC and ETH could come under selling pressure.
⚠️ I’ll be keeping a close eye on inflation data and expectations for Fed policy. Don’t just fixate on the candlestick charts—sometimes the force that really determines where the market goes is the hand behind the macroeconomy!
Remember: If inflation doesn’t leave the stage, rate cuts won’t come easily; and without ample liquidity, it’ll be hard for crypto to make a major move! 🔥$KOMA $IDOL $AIOT