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S&P 500 suffers big weekly loss as investors react to more discouraging inflation data – Aurora Cannabis (NASDAQ:ACB), Ethereum (ETH/USD)

The SPDR S&P 500 ETF Trust SPY suffered heavy losses this week after another round of disappointing inflation data.

On Tuesday, the US Department of Labor reported an 8.3% rise in the consumer price index in August, ahead of economists’ estimates of 8% inflation. After the release of the CPI figure, the Dow Jones Industrial Average fell 1,276 points on Tuesday, the worst day since June 2020.

On Thursday, President Joe Biden announced a preliminary labor agreement to prevent a national rail strike that had shut down more than 7,000 trains and cost the economy up to $2 billion a day. The deal came a day after Bernstein’s analysts downgraded its shares Union Pacific Corporation UNP and CSX Corporation CSXpointing to a challenging macroeconomic environment for railways in the second half of 2022.

Starbucks Corporation SBUX raised its long-term financial forecast and highlighted elements of its business rejuvenation plan at its first investor day event since 2020 on Tuesday. Starbucks Outgoing CEO Howard Schultzo said the company expects double-digit revenue and earnings growth over the next three years.

On Friday, the Biden administration released a framework for regulating the cryptocurrency market that includes provisions to protect investors, promote financial stability and eliminate fraud and illegal activity. Popular cryptocurrencies Ethereum ETH/USD Thursday completed its highly anticipated Merge, a conversion from proof-of-work verification to a more energy-efficient proof-of-stake model.

Failed Delivery: FedEx Corporation FDX shares traded lower Friday after the delivery giant reported fiscal first-quarter profits and earnings, citing weakness in global shipping volumes.

Investors will receive more quarterly earnings from Aurora Cannabis Inc ACB on Tuesday, General Mills, Inc. GIS and Lennar Corporation LEN on Wednesday and Costco Wholesale Corporation COST on Thursday.

According to FactSet, at least 240 companies in the S&P 500 have called “recession” during their second-quarter earnings talks.

Economic numbers: Following the disappointing CPI reading, investors will receive more important economic updates on Tuesday as the People’s Bank of China announces its latest interest rate decision and Wednesday when the Federal Reserve publishes its own interest rate decision and accompanying commentary.

Photo via Shutterstock.

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