The US stock market collapsed on the background of another negative inflation statistics. According to the data of the Ministry of Labor, by the end of June, the annual inflation accelerated to 9.1%, which significantly exceeded the expectations of analysts who had predicted a level of 8.8%. The main contribution to the rise in prices was made by energy prices, it is noted. in the report departments.
After the announcement of statistics, the S&P500 index fell from 3835.95 to 3757.18 points, dropping around 2.2%, the Dow Jones index fell 1.42% from 30981.51 to 30514.61 points, the NASDAQ technology index fell from 11744.99 to 11498, 96 points at 2.16%.
Against this background, the American currency began to strengthen – investors began to include in their forecasts a more stringent increase in the key rate of the Federal Reserve System (Fed), which will complicate lending and strengthen the dollar. The behavior of investors was also reflected in the dollar-euro currency pair, the American currency for the first time in 20 years became more expensive than the single European one, reaching $0.9999 per euro.
However, investors later bought the drawdown in the stock market. At 18:18 Moscow time, the S & P500 fell by 0.23% to 3810 points. The Dow Jones was down 0.52% to 30,820.04 and the NASDAQ even moved up 0.11% to 11,758.16.