US stock Benchmac rose to record highs Thursday morning, accelerating at the fastest pace in years, despite evidence of rising inflationary pressures in the United States. The fairly modest reaction of bond markets to rising stock prices and consumer prices means that investors have the belief that price pressures will not persist.
What are the main benchmarks doing?
Dow Jones Industrial Average
Dow Jones Industrial Average,
It increased by 242 points (0.7%) to 34,690.50.
S & P 500
It set the first daytime record since May 7, rising 28 points (0.7%) to 4,247.
Nasdaq Composite Index
It increased by 109 points (0.8%) to about 14,018.
Shares fell slightly on Wednesday and the Dow closed at 34,447.14, down 152.68 points (0.4%). The S & P 500 gave up a modest early rise, slightly above the record high of 4,232.60 set on May 7 and down 0.2%. The Nasdaq Composite closed at 0.1% lower.
What is driving the market?
US stocks are at record levels on Thursday, with living expenses skyrocketing in May and inflation accelerating High price of 5% for the first time in 13 yearsAs the economy restarts completely from the COVID pandemic.
Inflation has risen from 4.2% last month to 5% over the past year. This is the highest level since 2008, when the cost of oil reached a record high of $ 150 per barrel. Prior to that, the previous inflation rate was as high as it is today, in 1991.
The consumer price index rose 0.6% last month, marking the fourth consecutive year of growth. The government said on thursdayEconomists polled by Dow Jones and The Wall Street Journal predicted a 0.5% increase.
Still, investors seem to keep in mind that inflation is a short-term phenomenon, and current reports of price increases have phased out weaker inflation months from annual measures over time. The price level emphasizes the so-called basic effect, which is mechanically higher.
Mike Loewengart, Managing Director of Investment Management at E-Trade Financial, said there is a lot of potential appetite released after months of COVID-related blockades.
“Remember, as we begin to return to a full economic recovery, supply and demand constraints due to shortages of raw materials and labor are in place,” the strategist writes. “This creates the type of inflation that the Fed believes is temporary, which means it will pass,” he added.
Equities have been trapped in a narrow range, almost near record highs, as investors seek to gain more insight into their economic outlook in the aftermath of the public health crisis that has hampered the global economy for a year. It was.
But inflation concerns seemed to fade, judging from Thursday’s early morning moves. 10-Year Government Bond Yield
Wednesday fell to its lowest level since early March, but Thursday rose by about 1.52%.
An unexpected surge in the CPI in April shook the market temporarily last month, raising concerns about possible runaway inflation and the possibility of the Federal Reserve Board delaying bond purchases faster than expected. ..
Another weekly report First unemployed bill It decreased from 9,000 to 376,000 in the week ending June 5. Ministry of Labor said on Thursday, Marks the lowest level of billing since March 2020. Economists surveyed by The Wall Street Journal predicted that new bills would drop to seasonally adjusted 370,000.
in the meantime, The ECB on Thursday offered some surprises without changing interest rates and without changing the size of the asset purchase program. As expected. The ECB said it expects to continue to buy assets at a “significantly higher” pace than was seen earlier this year under the Pandemic Emergency Purchase Program (PEPP).
The meme strain was also noticed after that. GameStop Corp.
Late Wednesday, the Securities and Exchange Commission Cooperation in the survey Its inventory has become the unprecedented volatility we’ve seen in the last few months. He also suggested that it was not the only one being investigated.
From now on, US federal budget figures for May are scheduled for 2:00 pm Eastern Standard Time.
Which company is paying attention to?
GameStop appointed two Amazon.com Incs late Wednesday.
Shortly after private-equity investor Ryan Cohen was elected chairman of the company’s board of directors, he became a new top executive officer.The company also disclosed the plan Sell more stockThe popular meme stock fell by more than 5% in pre-market trading.Stocks fell more than 9%
Other meme strains were mixed AMC Entertainment Holdings Co., Ltd.
2.5% increase. Blackberry Co., Ltd.
1.3% decrease. Kos Co., Ltd.
3.9% decrease.And Nokia Corp.
Less than 1% off.
Increased 14% after retailers formerly known as restore hardware Exceeded earnings forecast Again at the beginning of 2021, we raised our forecasts for the year.
How are other assets going?
10-Year Government Bond Yield TMUBMUSD10Y Was 1.6 basis points higher, around 1.50%, centered around the lowest level since March. Yields and bond prices move in opposite directions.
ICE USD Index DXY, Currency readings against the baskets of the six major rivals were 0.1% lower.
European stocks rose slightly, continent-wide Stocks Europe 600
0.2% increase. London FTSE 100
It increased by 0.4%.
The S & P 500 set a daytime record and the Nasdaq regained 14,000 with the fastest inflation since 2008.
Source link The S & P 500 set a daytime record and the Nasdaq regained 14,000 with the fastest inflation since 2008.