Markets had a rough day: chips sank and US inflation ran hot

What happened

Bloomberg reports that a selloff in stocks around the world got worse during Asian trading. Chipmaker shares plunged, and US inflation came in faster than expected, fueling worries about more interest rate hikes. Investors moved into US Treasuries as a safe place to park money, and the dollar fell.

Why it matters

When inflation in the US runs hotter than expected, the usual worry is that borrowing costs stay high or go higher. As a general rule, higher US rates tend to pull money toward dollar assets and pressure the peso and the loonie, even though the dollar fell in this session; they also make credit cards and student loans more expensive over time. A broad selloff also hits the index funds many young people hold, so a day like this shows up in your account even if you own no chip stocks.