Summary
Global market: At 9:42 a.m. ET, the Dow Jones experienced a decline of 1.10 percent, while the S&P 500 and Nasdaq witnessed declines of 1.33 percent and 1.90 percent respectively.
On Tuesday, US stocks experienced a decline as the inflation data, which was worse than anticipated, diminished the optimism surrounding a potential interest rate reduction in May.
– The Dow Jones Industrial Average experienced a decline of 427.32 points, or 1.10%, reaching 38,370.06 at 9:42 a.m. ET.
– At the same time, the S&P 500 witnessed a decrease of 66.94 points, or 1.33%, settling at 4,954.90.
– The Nasdaq Composite also faced a decline of 303.61 points, or 1.90%, reaching 15,638.94.
The Dow Jones Industrial Average experienced a decline of 98.21 points, equivalent to a 0.25 percent decrease, as the opening bell rang, resulting in a value of 38,699.17. Similarly, the S&P 500 began the day with a lower opening, down by 53.90 points or 1.07 percent, reaching 4,967.94. The Nasdaq Composite also faced a significant drop of 343.67 points, representing a 2.16 percent decrease, settling at 15,598.88.
Microsoft’s shares experienced a decline of 2.3 percent, while Nvidia encountered a loss of 2.1 percent.
The stock prices of leading chip manufacturers, including Micron Technology, Advanced Micro Devices, and Broadcom, experienced a decline ranging from 2.5 percent to 4.5 percent. This downward trend reflects a challenging period for the chip industry, potentially influenced by various factors such as market conditions, competition, or global economic uncertainties.
Coca-Cola, on the other hand, witnessed a positive turn in its stock performance as its shares rose by 1.2 percent. This increase can be attributed to the company’s impressive fourth-quarter revenue, which surpassed market expectations. Coca-Cola’s ability to outperform forecasts indicates its strong market position and effective strategies in navigating the competitive beverage industry.
The January report from the Labor Department revealed that consumer prices in the United States experienced a higher-than-anticipated increase. This upward trend was primarily driven by the rising costs of shelter and healthcare. The data indicated that the cost of living for Americans had risen more than initially predicted.
Following the release of the inflation data, there was a notable surge in Treasury yields. Specifically, the yield on the 10-year Treasury increased from 4.18 percent to 4.25 percent, while the 2-year yield jumped from 4.47 percent to 4.57 percent. These significant changes in yields were a direct response to the inflation report and its implications for the financial market.
On Tuesday, Asian stock markets displayed a mixed performance. Japan’s Nikkei 225 index saw a modest increase of 2.9 percent, reaching a value of 37,963.97. However, the stock markets in Hong Kong and China, represented by the Hang Seng Index and Shanghai Composite respectively, remained closed due to a public holiday. This divergence in market activity across Asia reflected the varying economic conditions and events taking place in the region.
The Middle East conflict has contributed to a slight increase in oil prices on Tuesday, as uncertainties surrounding the ongoing fighting continue to impact the market. Brent futures experienced a rise of 54 cents, reaching $82.54 per barrel at 1224 GMT. Similarly, US West Texas Intermediate (WTI) crude saw a 50 cent increase, reaching $77.42 per barrel.
2. In parallel, gold prices also witnessed a rise on Tuesday. Spot gold recorded a 0.4 percent increase, reaching $2,027.99 per ounce by 1145 GMT. US gold futures followed suit, with a 0.4 percent increase, reaching $2,041.80 per ounce.
These price fluctuations in both the oil and gold markets highlight the impact of geopolitical uncertainties on global commodities. As tensions persist in the Middle East, investors and traders closely monitor the situation, leading to cautious market movements. The rise in oil prices reflects concerns over potential disruptions to supply, while the increase in gold prices indicates a flight to safe-haven assets amidst the prevailing uncertainties.
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