Wall Street is falling while Treasury yields and oil prices are down

NEW YORK (Reuters) – Wall Street stocks fell in a volatile session and oil prices fell on Tuesday, with risk appetite apparently waning as investors turned to safe havens such as Treasuries amid concerns about inflation and slowing economic growth.

US Treasuries rose, with the yield on the benchmark 10-year bond falling from a more than three-year high to less than 3% as the market reassessed inflation expectations a day before US Consumer Price Index (CPI) data was released.

Markets were volatile due to a combination of rising inflation and concerns that monetary tightening aimed at slowing price increases could also slow economic growth.

Register now to get free unlimited access to Reuters.com

Central banks in the United States, Britain and Australia last week raised interest rates and investors prepared for further tightening as policymakers battle high inflation.

And while all three US indices were recovering from Monday’s massive sell-off, the enthusiasm for stocks quickly faded.

“There’s a ton of cross-currents right now. Liquidity is drying up and volatility is the name of the game,” said Matthew Miskin, senior investment strategist at John Hancock Investment Management in Boston.

“The technology and growth aspect of the (stock) market has a lot of weight. Treasury yields are rising at the same speed that they have scared off risky assets. If they can take a break here, they can let the market… find some stability.”

Maskin was reassured by the Fed’s official comments on Tuesday that indicated efforts were being made to engineer a smooth landing. He noted in particular the comment by Loretta Meester, Cleveland Fed President, that while unemployment may increase and growth slow, Fed policy tightening should not push the economy into a “continuing recession.” Read more

See also  Authorities said a ground crew member died after "running into the engine" of a plane in Alabama

“They’ve been very hawkish, so any slight move would make the market want to smell that,” Maskin said. “Emotions are wise a lot of people are looking to give up. The dots aren’t quite related to that yet.”

1130 EST (1530 GMT), Dow Jones Industrial Average (.DJI) The Standard & Poor’s Index fell 97.45 points, or 0.3 percent, to 32,148.25 points (.SPX) It lost 10.91 points, or 0.27%, to 3980.33 points, and the Nasdaq Composite (nineteenth) It fell 16.49 points, or 0.14%, to 11606.76 points.

Pan-European STOXX 600 Index (.stoxx) It rose 0.80% and the MSCI gauge of stocks worldwide (.MIWD00000PUS) It fell 0.33%, after rising as much as 1.44% earlier.

The US dollar was choppy on Tuesday as it settled near a two-decade high before a key inflation reading could provide insight into the Fed’s policy path. Read more

The dollar index rose 0.164%, with the euro slipping 0.19% to $1.0535. The Japanese yen was down 0.03% against the dollar at 130.29 per dollar, while the British pound was last traded at $1.2301, down 0.24% on the day.

Previous data showed China’s export growth slowed to its weakest in nearly two years, as the central bank pledged to ramp up support for the sluggish economy. Read more

Oil prices fell in volatile trade as the market balanced looming European Union sanctions on Russian oil with demand concerns related to the coronavirus shutdown in China, a stronger dollar and rising recession risks.

US crude recently fell 1.85% to $101.18 a barrel, and Brent crude was at $103.92, down 1.91% on the day.

See also  France reveals hidden swimming pools with artificial intelligence, and imposes taxes on them

The benchmark 10-year bond recently rose 33/32 in price to 2.9497% from 3.079% late Monday.

Spot gold fell 0.4% to $1,847.41 an ounce. US gold futures contract % to $1,857.10 an ounce.

Elsewhere, bitcoin is up 4% after earlier dropping to its lowest level since July 2021. Tuesday’s gains allowed it to offset some losses when it slid 11.8% on Monday, its biggest daily drop since May 2021. Read More

Register now to get free unlimited access to Reuters.com

Additional reporting by Herbert Lasch and Chuck Mikolajchak in New York and Elizabeth Hawcroft in London. Editing by Bradley Perrett, Raisa Kasulowski and Alexander Smith

Our criteria: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published. Required fields are marked *