[US market conditions]Stock price decline, CPI receiving monetary tightening caution-dollar is around 130 yen-Bloomberg

The US stock market fell on the 11th. The US Consumer Price Index (CPI) released on the same day showed that inflation could remain high for some time. Monetary authorities have been forced to tighten tightening measures, raising concerns that a recession could occur.

The S & P 500 Index ended at 3935.18, down 1.7% from the previous day. The Dow Jones Industrial Average is down $ 326.63 (1%) to $ 31834.11. The Nasdaq Composite Index fell 3.2%.

Atlanta Fed President Raphael Bostic said he would support raising policy rates to levels that would curb economic growth if inflation remained high, but not enough to change market sentiment. The S & P 500 class widened its decline toward the end of the transaction, ending at the lowest price since March 2021. The Nasdaq 100 index, which consists of large tech stocks, fell 3.1%. Tesla and Apple were sold.

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The US CPI in April saw a slight slowdown in the year-on-year rate of increase compared to March, but the month-on-month growth exceeded market expectations.

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“Inflation seems to have taken root in many areas of the economy, whether inflation peaked or not, at a very slow pace,” said Charles Ripley, senior investment strategist at Allianz Investment Management. The decline in inflation will be a bigger problem for US financial authorities, who are trying to curb inflation while preventing recessions. “

In the US Treasury market, yields on short-term bonds have risen and the yield curve has flattened. As of 4:38 pm New York time, 10-year bond yields have fallen 6 basis points (bp, 1bp = 0.01%) to 2.93%.

The dollar continued to grow modestly in the foreign exchange market. The yen and the Canadian dollar rose against the US dollar. The Bloomberg Dollar Spot Index, which shows the movement of the dollar against the 10 major currencies, rose by less than 0.1%. At one point it dropped by 0.5%.

As of 4:39 pm New York time, the dollar is 0.3% lower than the yen at 1 dollar = 130.02 yen. The euro is down 0.2% against the dollar at 1 euro = 1.0511 dollars.

The New York crude oil futures market rebounded for the first time in three days. The European Union (EU) is still coordinating among its member states over an embargo on Russian crude oil. In the United States, fuel inventories were found to have dropped significantly ahead of the summer drive season.

Energy Information Administration (EIA) weekly statistics show that distillate inventories have fallen to their lowest levels since May 2005.Of US gasoline and diesel oilThe retail price reached a record high.

The June contract for West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) ends at $ 105.71 a barrel, up $ 5.95 (6%) from the previous day. The North Sea Brent July contract for the London ICE ended at $ 107.51, up $ 5.05.

New York gold futures have rebounded. The June contract for gold futures on the New York Board of Trade (COMEX) ended at $ 1853.70, an ounce, up 0.7% from the previous day.

Investors who have reviewed the contents of the U.S. CPI have determined that “the statistics do not change U.S. monetary policy in the short term,” said Ed Moya, senior market analyst at Oanda. Given that it has been badly marketed, it seems that around this level is a certain amount of support. “