Wall Street’s stock market stabilized on Tuesday following the global recession the day before. This was driven by rising energy prices, a crash in tech stocks, and concerns about inflation.
The S & P 500 Index rose 0.4% after falling 1.3% on Monday to its lowest level since late July.
Technology-intensive Nasdaq Composite Index says rising government bond yields Temporary stop Knocking high-value growth stocks across Facebook’s platform, up 0.6%.
The global stock market has been shaken in recent weeks by the US Federal Reserve Board’s bet on stimulus spending cuts. Meanwhile, in the United States, inflation above 5% on a headline basis for three months could reduce return on investment and drive central banks to higher interest rates.
“Inflation may be a short-term recession, but we have planted the seed that the investment climate we have enjoyed for many years is unsustainable,” said Invesco’s multi-asset fund manager Georgina Taylor. He said he was pushing money to a higher risk. Assets such as stocks. “And that will be more and more difficult for central banks.”
The federal government, which has curbed government bond yields through a coronavirus pandemic and made stocks relatively attractive with $ 120 billion in monthly asset purchases, has already shown that it is ready to curtail this buying activity. increase. Half of monetary policy makers also forecast rate hikes next year.
Federal Reserve Board Chair Jay Powell warned that supply chain bottlenecks and labor shortages caused by Covid-19 would continue. Employment data on Friday is expected to show that U.S. employers hired about 500,000 new workers in September, potentially strengthening cases to curb financial support during times of crisis. there is.
Annasta Punitska, Fidelity’s Global Macro Economist, said:
“At the same time that the resumption phase of global growth is declining and a significant slowdown is expected in China, it is becoming more tenacious,” she said. Debt problem aggravated Within the domestic real estate sector, while the battle for gas and coal is curtailing manufacturing activity.
In Asia, Hong Kong’s Hang Seng Index fell 1.5% and then closed flat, while Tokyo’s Tokyo Stock Price Index fell 1.3%.
The STOXX 600 in Europe increased by 0.6% as bank stocks benefiting from the outlook for rising interest rates pushed up lenders’ margins. London’s FTSE 100 rose 0.6% as energy stocks outperformed.
Brent crude rose 1.2% to $ 82.5 a barrel, the highest in three years after producer group OPEC +. Resisted call To increase production despite energy shortages in Europe and Asia, which pushed natural gas and coal prices to record highs.
Yields on US benchmark 10-year government bonds.This is inversely proportional to the price, so-called Risk premium Investors paying stocks added 0.02 percentage points to 1.505 percent. It increased from about 1.3% in late September.
The dollar index, which measures the US currency, rose 0.2 percent against the other six.
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