NEW YORK (dpa-AFX) – The good mood on the US stock market gave way to renewed concerns about inflation on Thursday. Inflation in the US accelerated faster than expected in January from a high level. Pressure came especially after St. Louis Federal Reserve Governor James Bullard said he supported a full percentage point hike in interest rates by July.
The leading index Dow Jones Industrial fell to 35,100 points shortly before the close of trading and thus to its low for the day. He finally ended trading with minus 1.47 percent to 35,241.59 points. The day before, it had regained its highest level since mid-January and recovered almost eight percent from its low around three weeks ago.
The S&P 500 index, which covers the broad market, lost 1.81 percent to 4504.08 points on Thursday. The technology index Nasdaq 100 fell by 2.33 percent to 14,705.64 points.
The inflation rate rose to 7.5 percent in January, the highest level since early 1982. “The Fed’s action is the highest course,” said NordLB analyst Bernd Krampen, referring to the development of energy prices as a key factor in inflation. “Financial markets are now pricing in a whole series of rate hikes.” Krampen also considers the first securities sales to be very likely this year, as long as even more dangerous Covid 19 variants do not spread or geopolitics interfere. This prospect of tightening monetary policy measures had repeatedly hit the US technology industry in particular in recent weeks./ck/he
– –
