Shares fall, close; yields fall after US inflation figures – SABC News

Shares on Wall Street fell sharply and Treasury yields fell in a volatile session on Wednesday as oil prices rose and investors worried about a possible economic downturn.

US stock indices fell higher and lower at the meeting as investors went through US inflation information to get indications of the Central Bank’s rise in interest rates.

US data showed higher-than-expected core inflation, excluding items such as oil prices.

Some investors seemed to be encouraged by the annual rise in consumer prices to 8.3% in April from 8.5% in March, even though it was above the 8.1% analysts’ estimate.

While some investors have been encouraged to recover between years, others have pointed out that inflation is still glowing red and that this is underlined by rising oil futures. “It’s all about worrying about a recession.

The inflation figures we received this morning were not good, worse than expected… It is high food prices and growing concern that inflation figures will be high, “said Tim Ghriskey, head of portfolio at Ingalls & Snyder.

The advisor also pointed to a flattering yield curve and referred to the difference between the Treasury’s long-term and short-term returns as a frightening sign.

“We have a very flat yield curve that has been flirting with rotation. It scares traders about the prospect of a recession. There are too many investors out there who believe the Fed can make a soft landing. It always seems questionable. “

The Dow Jones industrial average fell 326.63 points, or 1.02%, to 31,834.11, the S&P 500 was down 65.87 points, or 1.65%, to 3,935.18 and the Nasdaq Composite was down 373.44 points. or 3.4218%, or 3.4118%.

S&P closed at its lowest level since March 25, 2021 and 18% below its record on January 3.

Nasdaq was significantly behind its peers, with growth-sensitive growth sectors, technology and consumer trading, accounting for the rest of the market and also closing more than 3%.

The MSCI World Equities Index decreased by 0.88% and was the lowest closing since November 2020.

Earlier, Jim Paulsen, chief investment officer at The Leuthold Group in Minneapolis, had taken half the glass and pointed out that inflation, although still high, appeared to be declining.

“At the end of the day, we can be excited about whether it is a little higher or a little lower, but clearly inflation went up between years and looks like it peaked in March. It seems to have turned around, “he said.

The US dollar initially rose after inflation news then fell, but rose somewhat in late trading.

The dollar index, which measures the currency against the basket of major currencies, was 0.067%, with the euro falling by 0.13% to 1.0513 dollars.

The Japanese yen strengthened by 0.35% against the currency to 129.97 per dollar, while the sterling was last at 1.2245 dollars, falling by 0.62% on the day. In initial trading, the Treasury’s 10-year yield had fallen to its lowest level in a week.

But after the inflation data, yields rose again towards a three-year high of 3,203% on Monday before falling again.

The benchmark for 10-year bonds last rose by 20/32 in price and returned 2.9148%, from 2.993% late on Monday.

The 30-year bond last rose by 57/32 in price and the yield was 3.026%, from 3.129%, while the 2-year note last fell by 1/32 in price and the yield was 2.6371%, from 2.623%.

“The fluctuations of all markets are really something, the whip of the day,” said Lou Brien, a marketing analyst at DRW Trading. “You see a bit of a flight to safety and maybe the idea that even with today’s consumer price index we’ll tear down our careers.

Oil prices rose on Wednesday after the flow of Russian gas to Europe slowed down and Russia imposed sanctions on some European gas companies, adding to uncertainty in the world’s energy markets.

Futures crude oil in the United States was $ 105.71 a barrel, an increase of $ 5.95 or 5.96%, while Brent futures crude settled at $ 107.51 / barrel at $ 5.05 or 4.93%. .

Spot gold rose 0.8% to $ 1,852.79 an ounce.

Shares fall, close; yields fall after US inflation figures – SABC News

Source link Shares fall, close; yields fall after US inflation figures – SABC News

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