Increasingly risk-averse investors are watching the U.S. bond market as persistent inflation, the war in Ukraine, sooner-and-stronger interest rate hikes, and the COVID situation in China contribute to ongoing market volatility. The main U.S. stocks dropped some side as investors braced for the Federal Reserves big interest rate decision.
The main indexes tumbled as a rise in U.S. Treasury yields reached growth stocks ahead of a widely predicted interest-rate hike that could emerge as the largest since 2000.
The U.S. Federal Reserve is at a juncture—aiming to control roaring price pressures without pushing the world‘s largest economy into a recession. Market participants are awaiting the central bank’s next move. The tech-heavy Nasdaq Composite fell 1.4%.The S&P-500 lost 0.5%. The Dow Jones Industrial Average is still without a clear market direction.
Tesla CEO Elon Musk has been invited to testify before the U.K. Parliament's Digital, Culture, Media and Sport Committee to talk more in depth about his plans on Twitter.
Lyft declined 29% after the ridesharing company. The company retreated 8%Airbnb gained 3.6% as the enterprise estimates a continued travel recovery. Starbucks soared 2.4% after marking revenue above predictions. Private payrolls report from ADP indicated in a rally of 247,000 for April, registering below the 390,000 Dow Jones forecasts.
Another solid US jobs report confirmed expectations for “expeditious” US rate increases, and kept long-term market rates rising, with the US Treasury 10-year note yield up another 9 basis points to 3.13%. Investors talked up the drop in labor participation as inflationary as it suggests employers will be obliged to keep raising wages to attract workers. Short-term Treasury yields declined for a second day as the global risk-off move and equity outflows continued. Higher bond yields and sustained equity losses may call into question the view that there is no alternative to equities.
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