More than 1% fall on Wall with inflation worries back in focus

With more than 1% losses, the main Wall Street indexes are moving in Tuesday’s trading, with the caution returning to the market after last week’s strong gains as the economic data announced today in the USA and Europe brought back the concerns for the inflation.

U.S. market indexes hit an impressive rally last week, with the Dow Jones industrial average gaining 6.2%, ending a series of eight consecutive falling weeks – the biggest since 1932. The broader S&P 500 gained 6.6% last week week, marking the highest weekly gains since March 2020, while the technology Nasdaq strengthened by 6.8%.

The rally of inflation returned to the spotlight today, after the data that showed a new record in the Eurozone and an even greater acceleration of prices in the American housing market.

In particular, annual inflation in the Eurozone jumped to a record high in May, at 8.1%, after rising by 7.4% in April, according to the initial estimate of Eurostat, exceeding the estimates of analysts who put inflation at 7 , 8% in a Bloomberg poll.

At the same time, the S&P CoreLogic Case-Shiller price index for 20 metropolitan areas in the US climbed 21.2% year on year in March, setting a new record, after rising by 20.3% in February. All 20 cities saw double-digit price increases, with prices in Tampa soaring by 34.8%.

Indicators – Statistics

On the board, the Dow Jones lost 397.92 points or -1.20% to 32,824.12 points, while the S&P 500 fell 45.24 points or -1.09% to 4,112.34 points. The technological Nasdaq drops 134.22 units or -1.11% to 11,996.37 units.

Of the 30 stocks that make up the Dow Jones industrial average, only three are moving with a positive sign and 27 with a negative. Chevron gained the biggest gain with $ 2.43 or 1.36% at $ 180.71, followed by JPMorgan Chase at $ 131.42 with an increase of 0.11% and Goldman Sachs Group with earnings of 0 , 10% to $ 326.92

On the other hand, the three stocks with the biggest losses are Salesforce (-3.27%), Johnson & Johnson (-3.03%) and Coca-Cola (-2.27%).

The latest information comes shortly before US President Joe Biden’s meeting with Federal Reserve Governor Jerome Powell this afternoon at the Oval Office, but the US President has made it clear in an article in the Wall Street Journal that he has no intention of influence the decisions of the US Federal Reserve.

The On Monday, the member of the Board of the Fed, Christopher Wallerwas in favor of raising US interest rates by 50 basis points at a time until inflation fell to 2%, which is the target of the central bank.

In the shadow of renewed inflation concerns, the 10-year US yield is currently climbing 12 basis points to 2.87%.