On October 12, US markets declined as recently reported inflation data beat forecasts. The S&P 500 fell by 27.34 points (0.62%), bringing its total to 4,349.61, while the Dow Jones Industrial Average down by 173.73 points (0.51%), reaching 33,631.14. The tech-focused Nasdaq index dropped 85.46 points (0.63%), reaching 13,574.22 in the process.
At 8:30 am Eastern Time, the U.S. Bureau of Labour Statistics released data for the Consumer Price Index for September, revealing that prices rose 0.4% over the previous month and 3.7% over the year before October 1. This was greater than Dow Jones’ estimates of 0.3% for the month and 3.6% for the yearly change.
The higher-than-anticipated number was seen by traders as negative for stocks since it may mean that the Federal Reserve will need to keep interest rates higher than anticipated for a longer period of time in order to keep inflation under control.
Shares of a few retailers performed remarkably well despite the market’s overall fall. Following smaller-than-expected losses, Walgreens saw a 7% increase in stock, and Dollar General saw a nearly 10% increase in after-hours trading as the firm revealed the return of former CEO Todd Vasos. As traders processed the latest inflation statistics, U.S. Treasury rates increased, with the 10-year note rising by 0.102 points to 4.699% and the two-year note rising by 0.066 points to 5.071%.
As a result of worries about rising interest rates and a strong currency, gold prices declined by $6.52 per ounce to $1,868.93, continuing their downward trend that began on May 4. On October 12, oil prices gained little, with West Texas Intermediate rising by a penny per barrel (0.012%) to $83.50 and Brent crude rising by $0.56 (0.55%) to $86.38. The U.S. Dollar Index increased 0.76 points to 106.58 on the foreign currency market, while the euro dropped 0.85% to $1.0528 and the yen declined 0.47%, increasing the amount of yen needed to purchase one dollar to 149.772. Many traders think that if this figure exceeds 150, the Japanese monetary authorities will step in.
As a result of worries about rising interest rates and a strong currency, gold prices declined by $6.52 per ounce to $1,868.93, continuing their downward trend that began on May 4. On October 12, oil prices gained little, with West Texas Intermediate rising by a penny per barrel (0.012%) to $83.50 and Brent crude rising by $0.56 (0.55%) to $86.38. The U.S. Dollar Index increased 0.76 points to 106.58 on the foreign currency market, while the euro dropped 0.85% to $1.0528 and the yen declined 0.47%, increasing the amount of yen needed to purchase one dollar to 149.772. Many traders think that if this figure exceeds 150, the Japanese monetary authorities will step in.