Wall Street’s main index fell in the last trading session this month as worries about rising inflation emerged

Wall Street’s main index fell in the last trading session this month as worries about rising inflation emerged.

Wall Street The main indicators declined on the last trading day of this month as the Federal Reserve began its two-day policy meeting. As usual, inflation pressures and economic concerns remain a source of concern on Wall Street, especially when the recent consumer price index reports have been a bit foggy. As this month moves to its end, market analysis sees that the main indexes are ahead of receipt losses in April. The main indexes have recorded monthly declines from 2.4% to 3.6%.

Starting with wages and benefits costs, the increases last month led to a 1.2% rise in U.S. labor costs in the first quarter. Labor costs also saw a noticeable increase on a yearly basis, estimated at 4.2%. Which triggered worries about sticking to inflation. Broadly speaking, an increase in wages and benefits during the first quarter is a concern investors must consider. This increase has increased the prevalence of rising inflation among investors, and it’s supported by, as mentioned before, the March CPI report.

In terms of the market’s future outlook, it’s too early to make any assumptions; however, it’s more likely that the U.S. Federal Reserve will start moving its interest rate cuts this summer. Preferably in June and later in September, which is counted as the FED’s best month for cutting rates.

Meanwhile, on Wall Street, the S&P 500 benchmark was down by 0.89% to 5,070.50 basis points, falling to its lowest level this year. The tech-heavy composite Nasdaq declined by 1.09% to 15.809.80 basis points. The average Dow Jones index was down by 1% to 38.000.40 basis points, with the U.S. bond market seeing a worrying increase. The 10-year Treasury yields were up by 1.54% to 4,685%, and the fixed 30-year bonds climbed by 1.08% to 4,788%.

Furthermore, investors will turn their attention to other economic reports and events that will help outline the Fed’s plans to prevent rising inflation. One of these events is the FOMC meeting. Goldman Sachs shared on a note that higher inflation will cause a little delta in interest cuts. He says the FOMC is likely to stick to its message that higher inflation has delayed cuts at its May meeting,” which will affect the second quarter growth to a certain degree.

In other economic news, Coca-Cola’s earnings failed to lift its stock, while McDonald’s’ first-quarter earnings were lower than expected due to lower-than-expected store sales. Eli Lilly and 3M reported earnings beats. Keeping with individual stock first-quarter earnings, HSBC reported a stronger-than-expected Q1 profit. The company’s CEO announced his retrenchment after five years of leadership, and the company’s stock price climbed by 5%.

 

Oil prices, on the other hand, had declined due to inflationary rumors. The West Texas in terms were down by 1.09% to $81.9 per barrel. Berent crude oil was down by 1.16% to $86 per barrel.