U.S. stocks continue to weaken amid inflation concerns


Stocks fell most during Wednesday’s trading day, extending the pullback seen in the previous session. The key average tried to recover from the initial decline, but has since returned to a decline.

Currently, all major averages are in the negative territory, but technology-intensive Nasdaq is below the corresponding ones. The Nasdaq is down 128.09 points or 0.8 percent at 15,758.45, while the Dow is down 108.89 points or 0.3 percent at 36,211.09 and the S & P 500 is down 18.92 points or 0.4 percent at 4,666.33.

Concerns about the impact of rising inflation have contributed to Wall Street’s weakness after the Ministry of Labor released a report in October showing a higher-than-expected rise in US consumer prices.

According to the report, the consumer price index rose 0.4% in September and then 0.9% in October. Economists expected consumer prices to rise by 0.6%.

Except for high food and energy prices, core consumer prices rose 0.2% in September and then 0.6% in October. Core prices were expected to rise 0.4%.

The Ministry of Labor also said that the annual growth rate of consumer prices accelerated from 5.4% in September to 6.2% in October, reaching the highest level since November 1990.

Annual core price growth has also accelerated from 4.0% to 4.6%, reflecting the largest price increase since August 1991.

Accelerating consumer price inflation has raised concerns about the outlook for interest rates, even though the Federal Reserve has indicated that it will not start raising interest rates in a hurry.

Profit taking may also contribute to the extended pullback, as some traders monetize recent runs of stocks to record record highs.

Meanwhile, another report released by the Ministry of Labor shows that initial claims for unemployment benefits in the United States fell even slightly during the week ending November 6.

Initial unemployment claims fell to 267,000, down 4,000 from last week’s revised level of 271,000, according to the report.

Economists expected unemployed claims to drop from the originally reported 269,000 last week to 265,000.

Unemployed billing has fallen for the sixth straight week, dropping to the lowest level again since reaching 256,000 in the week ending March 14, 2020.

Sector news

Energy stocks continue to perform at their worst on the market today as crude oil prices plummet. Crude oil delivered in December has plummeted from $ 2.50 a barrel to $ 81.64.

The Philadelphia Oil Services Index is down 3.9%, the NYSE Arca Oil Index is down 2.2%, and the NYSE Arca Natural Gas Index is down 1.7%, reflecting the weaknesses of the energy sector.

Semiconductor stocks also show significant weakness, as evidenced by the 1.8% drop in the Philadelphia Semiconductor Index. The index continues to recede after hitting a daytime high in early Tuesday trading.

Steel, software and housing stocks have also shown significant weaknesses in afternoon trading, while gold stocks have risen sharply with the price of precious metals.

Other markets

In overseas transactions, stocks market During trading on Wednesday, it fell almost across the Asia Pacific region. Japan’s Nikkei 225 Index fell 0.6%, while China’s Shanghai Composite Index fell 0.4%.

Meanwhile, major European markets moved upwards that day. The UK’s FTSE100 index rose 0.9%, the German DAX index rose 0.2%, and the French CAC40 index closed just above the unchanged line.

In the bond market, government bonds fell sharply on the back of data on consumer price inflation. As a result, the benchmark 10-year bond yield is the opposite of the price, rising 11.2 basis points to 1.544%.

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U.S. stocks continue to weaken amid inflation concerns

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