Wall Street eases from highs after positive economic data. Markets sing the music of reflection – Markets in a minute


Wall Street eases from historic highs after positive economic data

The American stock markets opened lower, pressured by the positive economic data that were released today and that may lower the urgency in the introduction of the new stimulus package and, on the other hand, accelerate inflation.

The Dow Jones yields 0.33% to 31,419.8 points and the Nasdaq yields 0.9% to 13,923.8 points. The S & P500 depreciated 0.65% to 3,908.4

Yesterday Wall Street hit new historic highs, but today they are reacting down to the announcement that retail sales in the United States shot up 5.3% in January, well above the estimated 1.1%. Also before the opening, it was announced that industrial production increased by 0.9% in January, when economists pointed to an increase of 0.4%.

Good economic indicators are causing a sharp rise in bond yields (in the 10-year period it reached its peak in the year), with investors reducing their exposure to debt due to the bet on reflation (economic growth and rising inflation).

However, investors also fear that the accelerated growth of the economy will trigger a spike in inflation, forcing the central bank to raise interest rates. The Fed, which today discloses the minutes of the last monetary policy meeting, has promised to keep interest rates at historic lows as long as inflation is below 2%.

On the positive side, the shares of Verizon Communications and Chevron Corp stand out, which increase more than 4% after Warren Buffett’s Berkshire Hathaway increased investment in companies.

In Europe, the day is also being negative, after several quotes (such as Kering and British American Tobacco) have presented results that were below expectations.


Source: Jornal de Negócios by www.jornaldenegocios.pt.

*The article has been translated based on the content of Jornal de Negócios by www.jornaldenegocios.pt. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!