Wall Street drops after the US inflation data

Stocks in New York opened lower on Wednesday. Wall Street investors are looking at much higher-than-expected inflation data from the US. In recent days, fears of sharply rising inflation and rising interest rates have also caused prices to fall on stock exchanges, especially for tech funds.

Inflation in the United States was 0.8% month over month in April. This is the strongest increase since 2009 and was expected to reach 0.2 percent. If inflation rises rapidly, the Federal Reserve, the US umbrella of central banks, may move to raise interest rates more quickly. This is particularly unfavorable for tech companies that have recently lost their value. Apple, Alphabet, Microsoft, Tesla and Facebook were down 1.5%.

On the other hand, banks benefit from a higher interest rate. This resulted in positives for large US banks like Citigroup, Bank of America, JPMorgan Chase, Wells Fargo and Goldman Sachs at up to 2.4 percent.

Dow Jones Index

Shortly after the opening, the leading Dow Jones index recorded a loss of 0.3 percent at 34,177 points. The Standard & Poor’s 500 Index lost 0.5 percent to 4,129 points, and the Nasdaq index fell 1.2 percent to 13,186 points.

Amazon showed less than 0.8 percent. In 2017, the European Commission wrongly instructed the Luxembourg government to claim 250 million euros in “ arrears ” tax plus interest from the online store. This was ruled by the General Court of the European Union in a case brought by the government of Luxembourg and Amazon Corporation against the decision on the day-to-day management of the European Union.

See also  Fears of rising gasoline cost due to lower oil production in the Organization of Petroleum Exporting Countries (OPEC) | Economie

Computer game maker Electronic Arts (EA), known for its FIFA soccer games, has created fairly good numbers and prospects with investors. The stock rose 0.4 percent. FuboTV won over 14 percent after increasing revenue forecasts.

You can follow these topics

Leave a Reply

Your email address will not be published.