May 7th Market Update
Commodities Are Up
Gold is up nearly $16 to $1,840 an ounce as of 9 a.m. EDT, after a reading of U.S. labor conditions in the U.S. for April was weaker than expected.
Monday, the S&P 500 saw a rise in commodity and industrial shares and a retreat for tech and retail companies. Rising costs in sectors such as lumber, oil and computer chips raise questions about how inflation will plague the market in the coming months.
Tuesday, treasuries fell, and the dollar strengthened. Worries about inflation increased midweek with rising goods manufacturing costs being offset by consumer price tag jumps. Oil prices jumped to $66 per barrel and copper traded around $10,000 per tonne.
President Biden indicated that there could be flexibility around the increased tax proposal. While it is apparent that the increase in taxes is not negotiable, the exact details on how the $2.25 trillion infrastructure and jobs proposal will be funded remain to be fully realized.