spot_img
Thursday, June 30, 2022
No menu items!
More
    spot_img
    HomeBusinessWall Street ends down sharply as inflation data intensifies investor fears

    Wall Street ends down sharply as inflation data intensifies investor fears

    -

    The Dow Jones Industrial Average fell 882.47 points, or 2.73%, to 31,395.72

    Topics
    US stocks | Inflation | Wall Street

    Reuters 

    US stocks ended down sharply on Friday and posted their biggest weekly percentage declines since January as a steeper-than-expected rise in US consumer prices in May fueled investor worries about more aggressive interest rate hikes by the Federal Reserve.

    Tech and growth stocks, whose valuations rely more heavily on future cash flows, led the decline. Microsoft Corp and Apple Inc were among the biggest weights on the S&P 500 and Nasdaq.

    Following the inflation report, benchmark 10-year US Treasury yields reached 3.152%, the highest since May 9.

    The US Labor Department’s report showed the consumer price index (CPI) increased 1.0% last month after gaining 0.3% in April. Economists polled by Reuters had forecast the monthly CPI picking up 0.7%.

    Year-on-year, CPI surged 8.6%, its biggest gain since 1981 and following an 8.3% jump in May.

    Stocks have been volatile this year, and recent selling has largely been tied to uncertainty over the outlook for inflation and interest rates.

    “Inflation this past month was certainly hotter than expected and a reminder that inflation will be with us for longer than we previously expected,” said Michael Sheldon, chief investment officer at RDM Financial Group at Hightower in Westport, Connecticut.

    “But there are some signs within the economy that ultimately inflation should start to slow, and the Fed will likely do whatever it takes to keep raising rates and reduce inflation over the coming 12 to 18 months.” According to preliminary data, the S&P 500 lost 117.05 points, or 2.91%, to end at 3,900.77 points, while the Nasdaq Composite lost 415.07 points, or 3.53%, to 11,339.16. The Dow Jones Industrial Average fell 882.47 points, or 2.73%, to 31,395.72.

    The inflation report was published ahead of an anticipated second 50 basis points rate hike from the Fed next Wednesday. A further half-percentage-point is priced in for July, with a strong chance of a similar move in September.

    Netflix Inc slid after Goldman downgraded the streaming giant’s stock to “sell” from “neutral” due to a possibly weaker macro environment.

    (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

    Dear Reader,

    Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
    We, however, have a request.

    As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

    Support quality journalism and subscribe to Business Standard.

    Digital Editor

    Related articles

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Stay Connected

    0FansLike
    0FollowersFollow
    3,370FollowersFollow
    0SubscribersSubscribe
    spot_img

    Latest posts