Wednesday, February 1, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Stocks

Stocks rally, yields drop as U.S. CPI data calms investors

MtR by MtR
June 10, 2021
in Stocks
0
Stocks rally, yields drop as U.S. CPI data calms investors


Global stock markets rallied to new highs and bond yields slid on Thursday after a jump in U.S. inflation was viewed as insufficient to alter the Federal Reserve’s easy monetary policy stance that rising consumer prices will be transitory.

MSCI’s global benchmark, the S&P 500 and a pan-European stock index surged after the U.S. Labor Department said the consumer price index in the 12 months ended in May accelerated 5.0%, the biggest year-on-year increase since August 2008. read more

The report was largely in line with expectations, said Subadra Rajappa, head Of U.S. rates strategy at Societe Generale in New York.

“The market is really buying into the narrative that the rise in inflation is in fact transient because you’re not seeing that necessarily being priced into fears in the bond market,” Rajappa said.

The 10-year U.S. Treasury note’s yield fell to a three-month low of 1.440%. When investors were worried about inflation later in March, the yield had spiked to 1.776%.

Many now believe economic growth will slow and that any acceleration in inflation will be temporary, said Joseph LaVorgna, chief economist for the Americas at Natixis in New York.

“The (equity) market is going to ignore the data. It’s going to rally regardless,” LaVorgna said.

“If it turns out the economy is weaker in the next three to six months than people think, it won’t even matter if inflation continues to surprise to the upside,” he said.

MSCI’s all-country world index (.MIWD00000PUS) rose 0.37% to 718.23, setting a record close and intraday high. The pan-European STOXX 600 (.STOXX) scaled a new peak before closing slightly higher at 454.56. The European Central Bank raised its recovery outlook and pledged to keep stimulus flowing. read more

On Wall Street, the Dow Jones Industrial Average (.DJI) rose 0.06%, the S&P 500 (.SPX) gained 0.47%, climbing past its previous record, and the Nasdaq Composite (.IXIC) added 0.78%, spurred by growth stocks that thrive on low interest rates.

While wages are going up, prices for most commodities outside of energy have softened, as lumber, grains and meat have come down, said Thomas Hayes, chairman and managing member of Great Hill Capital LLC.

Inflation’s “rate of change had people very alarmed, particularly in the commodities basket. The softening has people a little bit more at ease,” Hayes said. “With the 10-year barely moving off this news, I’m inclined to start to put money to work.”

Surprisingly strong U.S. inflation in April had rattled investors, prompting caution ahead of Thursday’s May data. Yet risk assets have remained buoyant as central bankers on both sides of the Atlantic signaled willingness to keep monetary taps open until recovery takes hold.

The ECB said it would buy bonds at a “significantly higher” pace than earlier this year, reaffirming its March pledge as most central bank watchers had expected.

In the United States, data showed people filing new claims for unemployment benefits fell last week to the lowest level in nearly 15 months. read more

The dollar index fell 0.11% to 90.041, with the euro down 0.02% to $1.2176. The Japanese yen strengthened 0.29% versus the greenback at 109.30 per dollar.

Oil prices edged up to their highest in more than two years in volatile trade on optimism for strong economic demand after new U.S. unemployment claims fell to their lowest since the country’s first wave of COVID-19 last year.

Brent futures settled up 30 cents at $72.52 a barrel by 1:24 p.m. EDT (1724 GMT), while U.S. West Texas Intermediate (WTI) crude rose 33 cents to settle at $70.29 a barrel.

U.S. gold futures settled at 1,896.40 an ounce.

Our Standards: The Thomson Reuters Trust Principles.



Source link

Related articles

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings – The Wall Street Journal

August 9, 2022

S&P 500, Nasdaq futures fall on Tuesday as chip stocks decline

August 9, 2022

Related Posts

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings – The Wall Street Journal

by MtR
August 9, 2022
0

Stock Market News Today Live: Dow, S&P 500 Waver Ahead of Labor Costs, Earnings  The Wall Street Journal Source link

S&P 500, Nasdaq futures fall on Tuesday as chip stocks decline

by MtR
August 9, 2022
0

Traders on the floor of the NYSE, August 1, 2022.Source: NYSES&P 500 futures fell on Tuesday after another chipmaker warned...

Alibaba gets Hong Kong’s approval for a primary stock listing

by MtR
August 9, 2022
0

A filing Monday showed Chinese internet tech giant Alibaba is another step closer to letting mainland Chinese investors trade its...

Jim Cramer says these 7 Covid-era winning stocks have staying power

by MtR
August 9, 2022
0

CNBC's Jim Cramer on Monday offered investors a list of stocks that saw huge gains during the height of the...

US stocks tick lower as traders assess outlook for rate rises

by MtR
August 8, 2022
0

Wall Street stocks ticked lower on Monday, adding to losses in the previous session when a hot US jobs report...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Industrial Lubricants Market to Reach $71 Billion by 2027.

August 10, 2022

Recent News

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter