The S&P 500 sank more than 2.5%, orbiting it for the ninth weekly drop to 10, as fears grew that anti-inflation efforts risked stifling growth. Shares of the technology lifted most of the weight on Friday, with the Nasdaq 100 falling more than 3%. Shares of growth from Cathie Wood’s ETF flagship to software developers and chip makers fell. A separate report showed that the consumer climate in the US fell to a record high in early June, putting pressure on airlines, casinos and hotels. In the government market, two-year interest rates soared to 3%, a level not seen since 2008, narrowing the gap with more expired maturities and indicating expectations for a faster pace of central bank tightening. Bitcoin fell below $ 30,000, the Cboe volatility index jumped to 29 and the dollar rose. Interest rate traders raised bets on raising the Fed, with three-half increases being more likely during the June, July and September policy meetings, according to market-based prices. The central bank has signaled that it is likely to raise interest rates by 50 basis points at its meeting next week. The consumer price index rose by one percent from the previous month, exceeding all estimates. Shelters, food and gas contributed more. The so-called basic CPI, which removes the most volatile food and energy components, rose 0.6 percent from the previous month and 6 percent from a year ago, also above forecasts. “It’s straightforward,” said Dennis DeBusschere, founder of 22V Research. “Fixed bases from month to month means stricter economic conditions. Powell should sound quite aggressive next week, given the tight job market and basic CPI that did not fall from month to month. “The reaction at the front was huge compared to the long term.” Separately, the University of Michigan Preliminary Climate Index fell to 50.2 from 58.4 in May, according to data released Friday. The rate was weaker than all estimates in a Bloomberg survey of economists, which had an average forecast of 58.1. More market comments
“From the Fed’s point of view, the pursuit continues and more aggressive measures are likely to be needed to cover inflation,” Charlie Ripley, senior investment strategist at Allianz Investment Management, wrote in a note. “Either that translates into more aggressive increases this summer, or a continuation of the 50 basis point increases this fall is the choice for the Fed, but the general reality for the Fed is that inflation is out of control and has been cut. for these next months “. “One of the developments we’ve seen in previous inflation readings is that the more sticky core elements are starting to catch fire – and we’ve seen it accelerate with the latest core version,” said Max Gokhman, AlphaTrAI’s chief investment officer. “This means that the Fed firefighters have to fight harder, and that means the bulls can burn.”
Some of the main movements in the markets:
inventories
The S&P 500 fell 2.7% at 11:27 a.m. New York time The Nasdaq 100 fell 3.5%. The Dow Jones Industrial Average fell 2.3%. The Stoxx Europe 600 fell 2.7%. The MSCI World Index fell 2.7%.
currency
The Bloomberg Dollar Spot Index rose 0.8%. The euro fell 0.9 percent to $ 1.0523 The British pound fell 1.4% to 1.2319 US dollars The Japanese yen rose 0.2% to 134.14 yen per dollar
Links
The yield on 10-year bonds increased by 10 basis points to 3.14 percent Germany’s 10-year yield rose six basis points to 1.49%. Britain’s 10-year yield rose 11 basis points to 2.43 percent
Goods
West Texas Intermediate crude fell 1.5% to $ 119.63 a barrel Gold futures rose 0.5% to $ 1,861.90 an ounce
