Despite the inflation data not significantly impacting expectations of a 25 basis points rate cut by the Federal Reserve in June, U.S. Treasury yields continued to rise
Global stock markets experienced a slight decline while U.S. Treasury yields saw a modest increase on Wednesday. Investors are eagerly awaiting the upcoming data releases on inflation and consumer data to gain insights into the Federal Reserve’s future policy decisions.
The S&P 500 dipped marginally due to weakness in the tech sector, following a session where stocks shrugged off higher-than-expected U.S. consumer inflation (CPI) figures. The index received a boost from Oracle’s strong quarterly earnings performance.
Despite the inflation data not significantly impacting expectations of a 25 basis points rate cut by the Federal Reserve in June, U.S. Treasury yields continued to rise. This trend persisted on Wednesday.
We think it is super bullish that during this period which should be a pullback is not a pullback, according to Jay Hatfield, Chief Executive Officer at Infrastructure Capital Advisors in New York.
There is just this market where it never goes down because one day we are buying tech, the other day we are buying everything else, but it never goes down, it’s really very bullish action in our opinion for this time of year, Hatfield added.
Investors are anticipating the release of the U.S. producer price index (PPI) data on Thursday, along with reports on consumer spending and the labour market, ahead of the upcoming Fed policy meeting next week.
On Wall Street, the increase in yields led to a decline in tech stocks, dragging down the Nasdaq. The Dow Jones Industrial Average climbed 37.83 points, or 0.10%, to 39,043.32, the S&P 500 dropped 9.96 points, or 0.19%, to 5,165.31, and the Nasdaq Composite fell 87.87 points, or 0.54%, to 16,177.77.
The global stocks benchmark provided by MSCI experienced a decline of 0.39 points, equivalent to 0.05%, settling at 775.32. This drop occurred after the index came close to a new intraday record, with a mere 0.15% difference.
On the other hand, the STOXX 600 index concluded the day with a positive note, rising by 0.16% and further contributing to its already impressive record level. This growth was primarily supported by the performance of retail stocks. Additionally, Europe’s extensive FTSEurofirst 300 index witnessed an increase of 3.83 points, equivalent to 0.19%.
