U.S. stocks minus after strong retail figures: “The Fed is still quite patient. Powell has made it clear that the central bank’s monetary policy is still quite accommodative.”


New York

New York stock market headlines fell at the end of the week as strong retail sales data boosted investor concerns about accelerating inflation.

U.S. seasonally adjusted retail sales rose 0.6 percent from the previous month in June, when analysts predicted retail sales to fall 0.3 percent.

Investors feared higher-than-expected inflation rates this week. Governor of the US Federal Reserve Jerome Powell however, assured the House of Representatives Finance Committee in the U.S. Congress that the U.S. economy has not yet recovered nearly as much as to allow the central bank to begin shrinking its securities purchase program.

The head of the US Federal Reserve said the central bank strongly believes that the current price pressures are related to the opening of businesses in the wake of the interest rate pandemic and that they are temporary.

The Michigan Confidence Index, which measures consumer confidence in the economy, stood at 80.8 points in July, compared with analysts ’forecasts of 86.5 points. The previous month’s reading was 85.5 points.

Some investors remain optimistic and do not expect the US Federal Reserve to raise interest rates yet.

“The Fed is still quite patient. Powell has made it clear that the central bank’s monetary policy remains quite accommodative,” said the chief investment officer. Salman Baig treasurer Unigestionilta commented on The Wall Street Journs.

“These are relatively good conditions for risk-taking – growth is solid, bond yields are relatively stable,” he continues.

Chinese ride service Didi Global down Wall Street fell 3.2 percent as authorities and police investigated the company’s offices on Friday for security concerns.

Pharmaceutical manufacturer Modern was included in the S&P 500 index today. Belonging to an index is of great importance to companies’ shares, as index investors buy shares raised in the index for large sums. Moderna’s share rose 10.3 percent.

Semiconductor manufacturer Intelin the share fell 1.5 percent. The Wall Street Journal said the company was negotiating GlobalFoundriespurchase of the company. If completed, the total value of the deal would be about $ 30 billion, according to sources in the Wall Street Journal.

The 10-year rate on U.S. government debt was declining after stock markets closed and was quoted at 1.297 percent.

The Dow Jones index fell 0.9 percent, the broad S&P 500 index fell 0.8 percent and the Nasdaq index fell 0.8 percent.


Source: Arvopaperi by www.arvopaperi.fi.

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