US stock indexes fell at the close of the trading session on Tuesday, following data showed that inflation in the United States had accelerated over the past month to the highest level since late 1981.
Wall Street gave up its early trading gains, following US inflation data reinforced expectations that the Federal Reserve will need to tighten monetary policy at a sharper and faster pace than previously expected.
The 10-year US Treasury yield fell to 2.70%, following recording 2.82% earlier today, the highest level since December 2018, affected by the uncertainty regarding inflationary pressures and expectations of a sharp hike in US interest rates.
The Dow Jones index fell 88 points at 34,220 thousand points.
Standard & Poor’s fell by 0.3% at 4397 points, and the Nasdaq fell 0.3% at 13,371 thousand points.
dollar
The dollar fell, on Tuesday, following US inflation data showed that consumer prices rose 8.5 percent in March on an annual basis, supported by a rise in the price of gasoline, but the decline in the prices of used cars and trucks limited those increases.
While the preliminary reading was slightly higher than analysts had expected, as the US Consumer Price Index recorded the largest monthly rise in 40 years, the data showed some indications that inflation may have peaked. The core CPI was less than estimated, falling to 6.5 percent.
“There are a lot of positives to suggest that some of these price spikes might start to reverse,” said Edward Moya, senior market analyst at Wanda.
He added that this may indicate that the Federal Reserve (the US central bank) may not need to exaggerate monetary tightening in the second half of this year.
The dollar index fell 0.146 percent, and the euro fell 0.02 percent to $1.0881.
US 10-year Treasury yields fell slightly to 2.7099 percent, following reaching 2.793 percent, on Monday, the highest level since January 2019.
Despite the decline in the euro, it regained, on Tuesday, some of its gains made following the French elections, and had risen the previous day to $ 1.09550 due to news that current President Emmanuel Macron defeated his far-right rival Marine Le Pen in the first round of the presidential elections.
(Archyde.com)
