Wall Street closes weakly as high inflation depresses share prices

Wall Street closes weak
High inflation depresses stock prices

The latest US inflation data has left investors on Wall Street a bit perplexed. The dollar goes up and down. Oil and gold are increasing – mainly because of the focus on China.

After a volatile trading day, Wall Street closed in the red. Inflation data were evaluated differently over the course of the day. On the one hand, they were higher than expected, which ultimately put the shares under pressure. On the other hand, the rise in prices has not accelerated, which has fueled prices in the meantime.

Of the Dow Jones Index finally lost 1.0 percent to 31,834 points, S&P 500 and Nasdaq Composite fell by 1.6 and 3.2 percent, respectively. A total of 1094 (Tuesday: 1336) price winners and 2309 (2031) losers were counted on the NYSE, 97 (105) titles closed unchanged.

S&P 500 3,947.09

Reports from China temporarily supported the stock market. The pandemic should ease off a bit there. This means that the strict lockdowns could possibly be relaxed soon, it said. The linchpin of the development, however, is the continued course of inflation.

Dollar with ascent and descent

The dollar has had a roller coaster ride depending on the interpretation of the inflation data. In the end he noted dollar index well asserted. US yields tended to be mixed. At the short end, yields are rising in anticipation of further interest rate hikes, while at the medium and longer end they have fallen because security was sought. The 10-year US Treasury yield fell 7 basis points.

Crude Oil (Brent)
Crude Oil (Brent) 107.56

the oil prices attracted, however. Should the lockdowns be relaxed or even lifted in China, this should boost demand, according to the trade. The People’s Republic has the second highest oil hunger in the world. And should the EU succeed in embargoing Russian oil, Russian companies would be forced to cut production. Because the country cannot completely redirect its EU exports – the infrastructure is missing. Therefore, the global supply is likely to become scarcer, it said.

Of the gold price increased – also because of the view towards China. Unexpectedly high inflation rates from China boosted the precious metal. There, both producer and consumer prices rose more significantly than feared over the year. However, since the central bank in China is more likely to think about monetary easing, gold is in demand as a classic protection against inflation.

Game titles in focus

Among the individual values, the focus was on stocks from the games sector with business ID cards. So climbed Electronic Arts (EA) by 8 percent. Although the business figures for the fourth quarter were not very convincing and the forecast also provided few arguments to buy, investors concentrated on the new games that EA announced when the figures were presented.

Electronic Arts (EA)
Electronic Arts (EA) 116:10

Roblox up 3.4 percent after the online games provider reported a bigger first-quarter loss than analysts had expected. However, the company held out the prospect of new areas of business. unit software Although the first quarter figures met expectations, the developer of software for video games issued a disappointing sales forecast. The course collapsed by 37 percent.

The course of pixelworks gained 10.4 percent after the provider of software and semiconductors for video and pixel processing reported on the course of the first quarter.

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