The S&P/ASX 200 (ASX: XJO) managed to eke out a gain across the five days, whilst US stock markets continued to tumble.
Here are my three key investor takeaways from the week.
Rate hikes begin
During the week, the UK central bank became the first to move interest rates higher among G7 nations, with little reaction in most stock markets.
The so-called hawkish chancellor views the inflation surge, primarily driven by energy and labour shortages, as enough to warrant the move.
The question, however, is what impact this has on the economy, with many concerned early rate hikes may send the economy into a recession
New highs but more losers
New record highs have become commonplace in 2021, but it isn’t all smooth sailing below the surface.
The Russell 2000 index is now in a technical correction, having fallen 10% from recent highs. Whilst the index is still higher over the year, the median stock has actually fallen by more than 20%.
Similarly, recent IPOs are down by an average of 20% and a group of profitless tech names has fallen 30% in a few short weeks.
BNPL faces regulatory challenge
It looks like the ASX BNPL sector is bearing the brunt of pent up regulatory power in the US, with Friday’s announcement of an investigation into potentially predatory loans sending the sector into a tailspin.