Wall Street’s main indexes fell ahead of stronger-than-expected inflation data.
Wall Street crashed ahead of stronger spending and consumer product price data. According to Federal Reserve officials, the fight against inflation may take longer than expected.
Investors’ fears have become a reality, US central banks will escalate the fight, and the possibility of a market recession has increased significantly in the last two days.
Two Federal Reserve officials say that inflation data has increased at a faster pace than their estimation.
Because of the rapid and higher rise in inflation and consumer spending prices, the FED has been forced to maintain its current tightening monetary policy.
In terms of weekly gains, the ending of the third week of February is about to turn into the worst weekly decline for this week in the Wall Street stock market.
Wall Street is moving against the tide, or at least that’s what investors think. The stock market’s main three indexes have performed extremely well in the past month, raising hopes of a strong rally and recovery.
Yet in the past two weeks, the inflation data came in stronger than expected. Affecting the corporation’s revenues and stock market gains,
In today’s ongoing trading session, the S&P 500 benchmark has lost 58 basis points or 1.45%. The Dow Jones Industrial Average industrials plummeted by 1,35%, and the Nasdaq headed to its worst weekly performance since the start of 2023 by falling by 2,11% to 11,344.11 basis points.
Meanwhile, the dollar index is showing signs of recovery, rising by 0.58%.
The 10-year Treasury yield in the United States was also influenced by inflation data, rising by 2,06% to 3.961. In terms of its future outlook, the bond market analysis sees that the benchmark might drop by 4–6% in the next three to six months.
The 30-year Treasury yields increased by 1,87%, while the 5-year Treasury yields increased by 2.9%. Meanwhile, the 2-year benchmark is the most sensitive to an interest rate cut, declining by more than 5%.
Inflation and higher interest rates are considered game changers for both stock and bond markets, especially in a volatile market like the one we currently live in.
Moving to individual stock moves for today, Nasdaq individual stocks posted a negative earnings session. Apple Inc. stock fell by 2,29%, Alphabet A stock declined by 2,09%, Meta shares fell by 1,3%, and Amazon shares were down by 3,22%.
Other stocks performed well despite the harsh investing environment. Warner Bros. shares were up by more than 2%, and Beyond Meat shares skyrocketed by 15% after better-than-expected earnings results.
In commodity market moves, the U.S. West Texas price of crude oil increased by 1,02% to $76,11 per barrel. Brent oil prices rose by 0.85% to $85.4 per barrel. As for natural gas, the index jumped by 3,25% to $2.15 per gallon.
Gold prices have fallen, but the yellow metal remains relatively higher at a market price of $1817 per ounce.a