The Dow Jones Industrial Average closed lower on Nov. 10 as investors worried that US inflation, the highest in more than 30 years, could be a factor driving the Federal Reserve’s interest rate hikes. sooner than expected
- The Dow Jones Industrial Average closed at 36,079.94, down 240.04, or -0.66%,
- The S&P 500 index closed at 4,646.71 points, down 38.54 points, or -0.82%, and
- The Nasdaq index closed at 15,622.71, down 263.84, or -1.66%.
The New York Stock Exchange fell after the US Department of Labor said. The Consumer Price Index (CPI), a measure of inflation based on consumer spending, jumped 6.2 percent in October year on year. which is the highest level since December 1990 It was higher than analysts’ forecast of 5.9 percent from 5.4 percent in September.
Nancy Davis, an analyst with Quadratic Capital Management, said: “The October CPI jump reflects US inflation above the Fed’s target range. This is partly due to supply chain problems and labor shortages. We expect if inflation does not slow down. It might cause the Fed to lower its QE limit further, and it might speed up the Fed’s rate hike.”
Eight of the 11 stocks in the S&P500 index closed in negative territory, with energy stocks losing the hardest after WTI crude fell more than 3 percent overnight, with Exxon Mobil down 1.97%. Shelter Petroleum was down 5.70 percent, Chevron was down 1.59 percent, Halliburton was down 5.02 percent, and Conoco Phillips was down 3.63 percent.
Tech stocks have been pressured by higher US Treasury yields overnight. Apple was down 1.92%, Alphabet was down 2.03%, Amazon was 2.63 percent, Meta Platforms (Facebook) was down 2.3 percent, and Microsoft was down 2.3 percent. 1.53%
The rally in U.S. Treasury yields boosted bank stocks, with Wells Fargo up 0.94 percent, Bank of America up 0.78% and Citigroup up 0.32 percent.
Tesla shares closed up 4.34 percent, with their share price recovering after two straight days of falling as Twitter users voted for Tesla CEO Elon Musk to sell 10 shares. % in tesla to put money to pay taxes
Robinhood shares, an online brokerage that offers free, app-based stock trading, fell 6.02 percent, the second straight decline after reports of hackers compromised the company’s systems. This affects the data of more than 5 million customers.
For the US economic data released last night. The Labor Department said initial claims for unemployment benefits fell 4,000 to 267,000 last week. This was the lowest level since March 2020 from 271,000 the previous week.
Other US economic data scheduled to be released this week include: September job openings and labor turnover rates (JOLTS) and the November Consumer Confidence Index from the University of Michigan.
By InfoQuest News Agency (11 Nov 64)
Tags: dowjones, dow jones, stock market, new york stock market
