Business

Nasdaq, S&P, Dow tumble on inflation concerns


Wall Street in New York City

JaysonPhotography

The Nasdaq and S&P 500 were in the red in midday trading Friday, while the Dow also showed weakness. Wall Street’s main indexes failed to extend their strong gains from the previous day. An unexpected jump in inflation Expectations in the latest sentiment survey weighed heavily on investors.

The tech-heavy Nasdaq Composite (COMP.IND) has decreased 2.29% at 10,405.02 points while the S&P 500 (SP500) to be 1.82% lower at 3,602.96 points. The Dow is -0.94% at 29,755.24, getting some help from UnitedHealth and JPMorgan following their results.

University of Michigan’s preliminary reading of October consumer sentiment improved slightly up to 59.8. However, in the first increase since March, one-year inflation expectations rose to 5.1% from 4.7% previously and consensus to 4.6%.

“The rising inflation expectations could be a response to the rising gas prices in recent weeks, in which case it won’t continue,” said Ian Shepherdson of Pantheon Macro. “Furthermore, this is a rough reading and can be revised as much as +/- 0.2pp, if recent experience is any guide.”

However, as a result of September inflation data, this rebound – reversing last month’s decline – does not look good, as policymakers appear to be keeping an eye on the measures, Shepherdson added. How strict is this law?”

Third-quarter earnings season kicked off in earnest on Friday with major US banks leading the way. The technology link between JPMorgan and Wells Fargo increases after both Analysts’ top expectations, while Morgan Stanley delivered a mixed report, sending its shares lower. Insurance giant UnitedHealth also rose after raising its annual outlook.

Moving on to the bond market, interest rates are a bit higher. 10-year Treasury yield (US10Y) rose 3 basis points to 3.98% and the 2-year yield (US2Y) increased by 4 basis points to 4.49%. The yield curve inversion continued to expand, previously hitting another two-decade record.

“Ultimately, a break above 4% over 10 years now looks inevitable given the Fed’s inability to signal its bearish bias in the near term,” ING said. .

The UK is having an outsized impact once again. Gilt yields reverse after Chancellor Liz Truss naming her new Prime Minister.

In other economic data, September retail sales flat, short of the expected 0.2% gain. Used car sales rose 0.3% versus a forecast of 0.4%. Import prices fell a 1.2% higher than expected.

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button