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The US stock market on the 11th continued to fall. Selling from high-tech stocks spread to other sectors, especially energy stocks, financial stocks, and industrial stocks.
The market continues to be nervous about inflation. The Nasdaq-100 index, which has a high weight of high-tech stocks, dropped by nearly 2% at one point, but due to a lump of bargain purchases, the rate of decline was reduced to less than 0.1%.
The Dow Jones Industrial Average is $ 473.66 (1.4%) cheaper at $ 34269.16. The S & P 500 Index fell 0.9% to 4152.10. The Nasdaq Composite Index fell 0.1%.
There is active debate as to whether the expected rise in price pressure is strong enough to force the US Federal Open Market Committee (FOMC) to tighten monetary policy earlier than current guidance. Federal Reserve Board of Governors (FRB) Director Brainard said today that policymakers need to remain patient, saying the economy is still far from the Fed’s goals.
TD Ameritrade’s chief market strategist, JJ Kinahan, said, “There seems to be a general idea that inflation may materialize.” “Interest rates will rise slightly, if not significantly. At the same time, I think the debate over value or growth stocks will continue,” he said.
Valuations of high-tech stocks are often supported by growth expectations in the distant future. Such stocks, which were among the winners of the new Corona Severe, are now at the center of the sell-off due to inflationary concerns. Cathie Wood’s Ark Innovation ETF has fallen about 15% since the beginning of the year. Last year it was up nearly 150%.
In the foreign exchange market, the dollar has narrowed its decline due to the continued decline in stocks, but it is still generally weak against the 10 major currencies. Investors concerned about inflation are focused on the April Consumer Price Index (CPI), which will be released on the 12th. The pound continued to grow for three days.
“If tomorrow’s CPI is stronger than expected, the dollar may be a long-awaited support, but weak employment statistics make the hurdle much higher,” said Lee Hardman, a strategist at Bank of Tokyo-Mitsubishi UFJ. It has become. “
The Bloomberg Dollar Spot Index, which shows the movement of the dollar against the 10 major currencies, remains almost unchanged. As of 4:19 pm New York time, the dollar is 20 yen (0.2%) cheaper against the yen, and the dollar is 108.61 yen. It is said that 108.34 yen is the support line. The euro rose 0.2% against the dollar to $ 1.2149. At one point, it rose to $ 1.2182, the highest since February 26th.
In the US Treasury market, although there was a three-year bond auction in the afternoon, it became a quiet business and almost maintained the decline in the morning. Market interest shifted to the 10-year bond auction and CPI on the 12th.
Yields on 10-year bonds rose 2 basis points (bp, 1bp = 0.01%) to 1.62%. In the morning, it rose above the 50-day moving average and reached the level since May 3rd.
New York crude oil futures prices are rising. Although oil refiners cut production due to the shutdown of the US’s largest petroleum product pipeline, more crude oil stagnated in the Gulf of Mexico, but the weak dollar helped boost buying.
The June contract for West Texas Intermediate (WTI) futures on the New York Mercantile Exchange (NYMEX) is up 36 cents (0.6%) to $ 65.28 a barrel. The July contract for Brent North Sea in London ICE ends at $ 68.55, up 23 cents.
New York gold futures fell for the first time in 5 business days. Rising US Treasury yields have reduced demand for non-interest-bearing gold. The dollar’s curtailment has also reduced the attractiveness of gold as an alternative asset.
The June contract on the New York Board of Trade (COMEX) gold futures closed at $ 1863.10 per ounce, down 0.1%.
Original title:Stocks Slide for Second Day; Treasury Yields Rise: Markets Wrap（抜粋）
Dollar Erases Loss as Stocks Decline, Pound Gains: Inside G-10（抜粋）
Treasuries Hold Losses Amid Solid 3-Year Auction; Curve Steepens（抜粋）
Oil Edges Higher With Weak Dollar Offsetting Refiner Run Cuts
Gold Set For First Loss in Five Days With Yields Gaining
(Update quotes and add comments on CPI and dollar)