Wall Street decreases due to fresh inflation fears and market uncertainty

Wall Street decreases due to fresh inflation fears and market uncertainty

Wall Street dipped lower on Thursday as fear of persisting inflation rose today. The decline in U.S. stock was influenced by the climbing Treasury yields. The data revealed today indicate a rising inflation due to the incline in the S&P global flash US PMI composite, which has increased from 51.3 in April to 54.4 in May. The report noted the second-largest monthly inflation increase in the past eight months. Investors’ expectations for rate cuts diminished, influenced by the Fed’s May meeting minutes highlighting concerns over stalling disinflation.

Meanwhile, in the bond market, the 2-year Treasury rose 4.9 basis points to 4.93%, the 10-year Treasury yields climbed by 0.9%, and the fixed 30-year bonds were up by 0.61%. As for the marital explanation in terms of interest rate cuts, due to rising inflation and tight market conditions, inventors have turned pessimistic on this subject. Now, according to the latest survey, the probability of interest rates being cut has just decreased from the previous 51% to 48%.

Moving to Wall Street, due to persistent inflation, the U.S. stock went lower, with the S&P 500 main benchmark falling by 0.86% to 5,260.60 basis points. The tech-heavy composite Nasdaq was down by 0.64% despite the better-than-expected earnings report from Nvidia. The Dow Jones also took heavy losses, with a 1.55% decline to 39.070.90 basis points. As for the U.S. dollar, the low session did not affect the dollar, which is currently up by 0.18%.

Moving on to the corporate news, Nvidia’s strong Q1 revenue report boosted the company’s stock price by 10% this morning. The company’s revenues rose by 262% from a year ago, which is higher than market expectations by $2 billion. Nvidia revealed a ten-for-one forward stock split set to begin on June 7, aiming to make stock ownership easier for both employees and investors. Over the last year, Nvidia’s share price has skyrocketed by 209%.

CEO Jensen Huang shared on Twitter that “AI will bring significant productivity gains to nearly every industry and help companies be more cost- and energy-efficient while expanding revenue opportunities.” Despite the jumping Nvidia share prices, in terms of overlap performance, the surging Nvidia prices were enough to save U.S. stock from declining. In fact, Nvidia was the only stock that rose significantly today, with others swinging between ups and downs due to fresh interest rate fears.

In other corporation news, Live Nation Enterprise Stock dropped 8% on reports of a DOJ lawsuit over monopolistic practices by Ticketmaster and potential separation from the firm.

While Boeing grew by 10% due to warnings of larger cash flow hits and halted deliveries in China pending additional certification documents, ELF Beuty rose by 14% due to warnings of larger cash flow hits and halted deliveries in China pending additional certification documents.

Moving to the oil market, the West Texas intermediate declined by 0.9% to $76 per barrel, whereas the Brent crude oil decreased by 0.70% to $81.90 per barrel.