US stocks suffered their worst weekly decline in over two months on Friday, as investors reacted to the latest evidence of high inflation in the US economy. The S&P 500 and the Nasdaq 100 both dropped by around 1%, with the former down 3% and the latter 3.5% for the week. US Treasuries also sold off, with the two-year yield reaching its highest level since 2007. Core monthly personal consumption expenditure rose 0.6% from December to January, and 4.7% year-on-year, both higher than expected. This has led investors to believe that the Federal Reserve will continue to raise interest rates in order to combat inflation. This sentiment was also reflected in European markets, with the Stoxx 600 and the FTSE 100 both down 1%, and the Dax and CAC 40 both down 1.8%. In Asia, the Hang Seng index and China’s CSI 300 both fell 1.7%. Despite positive earnings from ecommerce giant Alibaba, the company’s shares fell 5.4%, indicating investor caution over China’s economic recovery. The euro was down 0.5%, while the US dollar index was up 0.5%.
Source link
Join our Facebook page From top right corner.