Home News Inflationary Pressure, Hawkish Fed Official Remarks Keep US Stocks on Leash

Inflationary Pressure, Hawkish Fed Official Remarks Keep US Stocks on Leash

Inflationary Pressure, Hawkish Fed Official Remarks Keep US Stocks on Leash

US Stocks dropped from a record Friday, with economic data showing potential inflation pressures and hawkish remarks from a Federal Reserve official.

For the month, Dow added 2.4%, the S&P 500 gained 5.6%, and the Nasdaq jumped 7%. Dow was down 0.54% at 33,875 while the S&P was down by 0.72%. Nasdaq was down by 0.85%.

Dallas Fed President Robert Kaplan said Friday that he believes it’s time to discuss tapering the central bank’s asset purchases, breaking ranks with Chairman Jerome Powell. The yield on 10-year Treasuries was little changed at 1.63%

European stocks ended lower on Friday after dismal GDP data but marked a third straight month of gains on strong corporate earnings and optimism about economic recovery from the COVID-19 pandemic.

STOXX 600 index fell 0.3%, hovering below its all-time high, and ending the month 1.8% higher. DAX was down 0.12% while CAC was down 0.53% & FTSE were flat

AstraZeneca jumped 4.3% as the British drugmaker posted better-than-expected results and forecast second-half growth. Banking stocks came under pressure on Friday as euro zone bond yields eased from their highest level since January 2020.

Data showed the eurozone economy dipped into a second technical recession after a smaller than expected contraction in the first quarter but is now set for recovery as pandemic curbs are lifted amid accelerating vaccination campaigns.

Stocks in Asia had a mixed start to the week with some major markets closed for a holiday and global inflation concerns resurfacing. Markets in Japan and China are shut for holidays.

Kospi was flat while ASX 200 (Australia) was up 0.48%.

West Texas Intermediate crude fell 2.3% to $64 a barrel. Oil prices slipped on Friday, taking a breather after touching their highest in six weeks as economic recovery and bullish summer fuel demand outlook outweighed concerns of wider lockdowns in India and Brazil to curb the COVID-19 pandemic. Gold was flat at $1,768 an ounce.

Fiscal Stimulus Bolsters US Economic Growth in Q1, Fastest GDP Growth Since 2003

The second-fastest gross domestic product growth since the third quarter of 2003, reported by the Commerce Department on Thursday, left output just 0.9% shy of its level at the end of 2019.

US Economy Grew Robustly in First Quarter

GDP grew at a 6.4% annual rate in the quarter, leaving the economy within 1% of its peak.

Asia-Pacific Markets Broadly Lower As Investors Turn Cautious

Asia-Pacific markets struggled for gains Friday as investors turned cautious, despite a positive finish stateside in the previous session.

World Shares Near Record High on Strong US Economic Data and Earnings

US economic growth accelerated in the first quarter, fuelled by massive government aid.

How the US Won the Economic Recovery

I looked for a country that got the economic response to Covid-19 right. I found the US.

Barclays Boss Predicts Biggest Economic Boom Since 1948

The UK is about to experience its biggest economic boom since the aftermath of World War Two, according to Barclays boss Jes Staley. His upbeat...

Buying American Is Easier Said Than Done: Will Biden’s Plan Juice the US Economy?

Joe Biden and Donald Trump don't agree on much, but this much they do: We should buy American products. But that's easier said than done.

Silver Down As Dollar and Yields on Bonds Rose as US Economy Advanced

Benchmark U.S. 10-year Treasury yields hovered near a more than two-week high, increasing the opportunity cost of holding non-yielding bullion.

Yellen Doesn’t See Biden Plan Creating Inflation ‘Issue’

President Joe Biden’s economic plan is unlikely to create inflation pressure in the U.S. because the boost to demand will be spread over a decade, said Treasury Secretary Janet Yellen.

Inflationary Pressure, Hawkish Fed Official Remarks Keep US Stocks on Leash

Dow added 2.4%, the S&P 500 gained 5.6%, and the Nasdaq jumped 7%. Dow was down 0.54% at 33,875 while the S&P was down by 0.72%. Nasdaq was down by 0.85%.