From WKBN: 2024-04-10 10:42:35

U.S. stocks are dropping due to concerns over increasing inflation. The S&P 500 is down 1.2%, with nine out of 10 stocks falling. The Dow Jones is down by 514 points, and the Nasdaq composite is 1.2% lower.

Treasury yields surged after a report showed higher inflation than expected. This elevated worries about the progress in lowering inflation. If inflation continues to rise, the Federal Reserve may hold back on interest rate cuts.

The fear of sustained inflation has caused a decline in bonds, bitcoin, and gold prices. Treasury yields rose, with the 10-year yield increasing to 4.50%. Traders have reduced bets on rate cuts and shifted focus to fewer rate cuts this year.

High interest rates could lead to a slowdown in the economy, hurting investment prices and potentially causing a recession. Real-estate investment trusts and utility companies were among the worst hit on Wall Street due to high interest rates.

Delta Air Lines reported stronger-than-expected profits, attributing it to strong global demand. Other airline stocks like United Airlines rose. Banking sector earnings, including JPMorgan Chase and Wells Fargo, will be closely monitored in the upcoming earnings season.

Global stock markets have seen mixed performances, with European indexes falling and Asian markets fluctuating. Hong Kong stocks rose by 1.9%, while Shanghai saw a 0.7% decline after Fitch Ratings reduced China’s public finances outlook.



Read more at WKBN: Asian markets are mixed, Shanghai falls as Fitch lowers China’s rating outlook