Stock market traders are very nervous about the inflation data coming on Friday. Although the Fed is raising interest rates, prices are expected to continue to rise. The central bank will probably respond with further rate hikes. The price of oil is also a concern.
Concerns about interest rates and inflation weighed on the US stock exchanges. The leading index Dow Jones Industrial fell by 1.94 percent to 32,272.79 points. For the market-wide S
On the financial markets in the US, nervousness increased in the run-up to the inflation data expected on Friday, partly because of the persistently high oil prices. Consumer prices are expected to rise by 0.7 percent in May. The core consumer price index, which excludes the volatile food and energy sectors, is expected to come in at 0.5 percent. "There is a direct link from higher prices at the pump for the US consumer to higher US inflation," said Huw Roberts, head of analytics at Quant Insight. North Sea Brent oil cost $123.53 a barrel. Yields rose noticeably on the bond markets.
Interest rate dependent high growth companies were among the biggest losers on Wall Street. Bank of America shares fell 2.5 percent, Apple and Amazon shares fell by up to 4.2 percent. US casino operators' shares plummeted after China imposed new coronavirus restrictions on the industry. Residents of Minhang District in Shanghai have been ordered to stay at home for two days to curb the risk of transmission of the coronavirus.
Takeover speculation drove the price of NXP Semi. The Dutch chipmaker's US-listed shares rose more than seven percent to $184.22. According to an Asian media report, a senior executive at South Korean electronics giant Samsung is holding talks on possible M
Alibaba shares fell despite renewed hopes of an IPO for financial services firm Ant Group. The US-listed shares of the Chinese online retailer, whose founder Jack Ma Ant controls, fell by almost seven percent. According to insiders, the fintech, which has fallen out of favor with Chinese regulators, has been given the green light to revive its stock market plans.
