US MARKET / Very weak – High inflation scares investors | News

NEW YORK (Dow Jones) – Concerns about inflation and interest rates dominated actions on Wall Street on Friday. US consumer prices in May rose more than expected both for the month and for the year. Core inflation was also above market forecasts. The data will probably influence the considerations at the US Federal Reserve meeting next week regarding the future path of interest rates. They did not point to the inflation peak and suggested that additional interest rate hikes by the US Federal Reserve may be priced in on the markets.

Additionally, the price increases clearly weaken the mood of American consumers: the consumer sentiment index calculated by the University of Michigan unexpectedly dropped to a record low level in early June.

The Dow Jones index lost 2.7 percent. The S&P 500 index fell by 2.9 percent. Nasdaq Composite fell 3.5 percent. The winners on the New York Stock Exchange were clearly in the minority again (558) (Thursday: 553). They had 2,743 (2,760) losers. 92 (114) titles were closed unchanged.

The dollar has peaked in three weeks

The prospect of further increases in US interest rates pushed the US dollar to its highest level in three weeks. The dollar index increased by 0.9 percent. In the bond market, yields on the short end increased sharply. Traders speculated on a short-term rise in key interest rates and even rate hikes of more than 75 basis points have been reinstated. In the longer term, however, inflation may fall again, so long-range yields rose more slowly.

Worries about the economy supported the gold price, despite rising market interest rates and a very strong dollar. On the other hand, players in the oil market, where prices were falling, feared a fall in demand if the emerging interest rate hikes were to slow down the economy. New blockades from Shanghai have also been reported. They may also lower the demand from China.

Facebook saves on messages

Among individual stocks, Meta Platforms lost 4.6 percent. due to the weakness of tech stocks. Facebook is clearly reviewing its commitment to pay for messages on its own platform. The company could thus save the millions of dollars it currently sends to publishers. Before it was released to the market, it supported that.

Docusign shares fell by 24.5 percent. The developer of electronic signature software reported a slowdown in growth in the first quarter. The company also cut back on hiring plans. Net profit for the first quarter was below analysts’ expectations.

Stitch Fix shares fell 18.4 percent. The styling specialist fights consumer restraint and saves 330 jobs. Losses are getting worse. In turn, Vail Resorts grew by 1.3 percent. The ski area operator saw profits and sales increased after coronation hedging was completed. Rent the Runway shares lost about 4 percent. While the e-commerce platform doubled its sales, exceptionally weak consumer sentiment may have weighed down on the stock market.

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INDEX last + / -% absolute + / -% YTD

DJIA 31,392.79 -2.7% -880.00 -13.6%

S&P 500 3 900.86 -2.9% -116.96 -18.2%

Nasdaq Comp. 11 340.02 -3.5% -414.20 -27.5%

Nasdaq-100 11 832.82 -3.6% -436.96 -27.5%

US bonds

Term Profitability Bp to VT Profitability VT +/- Bp YTD

2 years 3.05 +25.4 2.80 232.3

5 years 3.26 +18.0 3.08 199.5

7 years 3.23 +14.6 3.09 179.2

10 years 3.16 +11.2 3.04 164.7

30 years old 3.19 +2.6 3.16 129.1

FOREX last +/-% Thu 10:00 17:31% YTD

EUR / USD 1.0518 -0.9% 1.0698 1.0738 -7.5%

EUR / JPY 141.36 -0.9% 142.86 143.78 + 8.0%

EUR / CHF 1.0395 -0.2% 1.0481 1.0467 + 0.2%

EUR / GBP 0.8543 + 0.5% 0.8563 0.8559 + 1.7%

USD / JPY 134.40 -0.0% 133.46 133.88 + 16.8%

GBP / USD 1.2312 -1.5% 1.2495 1.2547 -9.0%

USD / CNH (offshore) 6.7325 + 0.5% 6.6923 6.6899 + 6.0%

Bitcoin

BTC / USD 29,078.03 -3.4% 30 506.34 30 459.14 -37.1%

ROHOEL the last VT-Settl. +/-% +/- USD% YTD

WTI / Nymex 120.53 121.51 -0.8% -0.98 + 65.6%

Brent / ICE 121.81 123.07 -1.0% -1.26 + 61.5%

METALS last day before +/-% +/- USD% YTD

Gold (spot) 1,871.99 1,847.91 + 1.3% +24.08 + 2.3%

Silver (Spot) 21.88 21.69 + 0.9% +0.19 -6.1%

Platinum (Spot) 977.07 975.34 + 0.2% +1.73 + 0.7%

Future Miedź 4.29 4.38 -2.1% -0.09 -3.5%

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Contact the author: maerkte.de@dowjones.com

DJG / DJN / cln

(END) Dow Jones Newswires

June 10, 2022 4:11 PM ET (20:11 GMT)

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