Market volatility increases. Below are a few of the highlights to help you stay up to date.
CPI increased 8.3% YoY
Another red-hot CPI Inflation number at 8.3%, worse than expected and sends Real Wages lower for a 7th straight month.
VIX increases to 34
VIX is a measure of the stock market's expectation of volatility based on S&P 500 index options. It reached a monthly high of 34 this week.
UST Depegging
UST broke it's peg, contributing to a large weekend sell off on low volume. The Curve UST/3crv pool became imbalanced. LUNA sold off as the Terra Foundation sought emergency funding in an attempt to backstop the peg. There was some speculation on crypto twitter relating to the cause of this sudden imbalance in the pool:
UST fiasco is very fishy.
— Mudit Gupta (@Mudit__Gupta) May 8, 2022
- Terraform Labs removed $150m of UST liquidity from Curve yesterday
- 1 minute later, a freshly funded address bridged $84m of UST to Ethereum (Initiated bridging before TFL removed liquidity)
- 4 min later, it dumped the UST, triggering the sell-off
FOMC Rally then Selloff
The Federal Reserve held it's monthly FOMC last week and the market rallied during the speech on news that the Fed Chair Powell would be ruling out a 75 basis point rate hike. However, the following day, the markets sold off and ended the week near the lows with continued selling into the weekend.
Upcoming Market Events scheduled this week
- USD Wholesale inventories - May 9th at 2pm EST.
- Fed Chair Williams Speech - May 10th at 11:40am EST.
- US Consumer Price Index for April (YoY) - May 11th at 12:30pm EST.
- US Jobless Claims and Producer Price Index April (YoY) - 12:30pm EST
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