Crashed, US Inflation High and Wall Street Weak

Crashed, US Inflation High and Wall Street Weak


Wall Street weakened on Thursday (02/10/2022) after the latest data showed inflation in the United States reached its highest level in 40 years.

As reported by Reuters, the Dow Jones Industrial Average on the New York Stock Exchange, USA, slumped 526.47 points, or 1.47 percent, to 35,241.59. The S&P 500 index fell 83.10 points, or about 1.81 percent, to 4,504.08. The NASDAQ composite index plunged 304.73 points, or about 2.10 percent, to 14,185.64.

A report released by the US Department of Labor on Thursday showed inflation hit 7.5 percent last month, beating economists' estimates of 7.3 percent.

Responding to US inflation data, St. Louis Federal Reserve President James Bullard stated that he wanted interest rates to increase 1 percent through July 2022.

In its March meeting, the Fed is expected to increase interest rates by 50 basis points.

All 11 major sectors of the S&P 500 ended in negative territory, led by technology and property.

Gold futures prices on the COMEX New York Mercantile Exchange remained unchanged from the previous session, with gold for March 2022 delivery remaining at US$1,837.40 per ounce.

The US dollar exchange rate strengthened with the US dollar index up 0.30 percent to 95.78.

European stocks fell on Friday, with the STOXX 600 Europe index down 0.2 percent, driven by a slump in auto sector shares.

The FTSE 100 index on the London Stock Exchange, UK, increased 28.98 points, or about 0.38 percent, to 7,672.40. The Dax 30 index on the Frankfurt Stock Exchange, Germany, ended flat with a move up of just 8.43 points to 15,490.44.

The Ibex 35 index in Bolsa de Madrid, Spain, rose 39.80 points, or about 0.45 percent, to 8,886.20. The Cac 40 index at Euronext, Paris, France, fell 29.33 points, or about 0.41 percent, to 7,101.55.

The pound sterling exchange rate strengthened 0.27 percent against the US dollar to US $ 1.3573 per pound. Meanwhile, against the euro, the pound exchange rate is in the range of 1.1866 euros per pound.


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