Jakarta, CNBC Indonesia – United States (US) stock market plunges at the open trading Thursday (10/2/2022), amid rising yields (yield) US government bonds respond to skyrocketing inflation.
The Dow Jones Industrial Average dropped 150 points (-0.5%) at 08:30 local time (21:30 WIB) and within 30 minutes to minus 61.97 points (-0.17%) to 35,706.09. The S&P 500 is down 17,23 points (-0,38%) ke 4,569,95 and the Nasdaq slumped 78.28 points (-0.54%) to 14,412.09.
The US Consumer Price Index (CPI) reportedly hit 7.5% (annual), being the highest since 1982 and even surpassing market expectations of 7.2%. Yield (yield) 10-year government bonds jumped up to 2% in response to the release, far away from the position at the end of 2021 which was only 1.51%.
“With January’s surprising inflation spike, markets are now wondering how aggressive the central bank will be [Federal Reserve/The Fed]”said Barry Gilbert, LPL Financial’s asset allocation planner, as quoted by CNBC.
Tech stocks also fell as Apple and Amazon fell more than 1% while Microsoft dropped 2.3%. On the other hand, banking stocks rose as they benefited from higher interest rates. Citigroup and Wells Fargo were both up 1% at the open.
Disney shares jumped nearly 6% after releasing its IB-2021 quarterly performance that beat market expectations. Likewise, the shares of Uber and Coca Cola jumped by 4% and 1% respectively after releasing positive financial performances.
On the other hand, the weekly jobless claims figure came in at 223,000, or below expectations.
CNBC INDONESIA RESEARCH TEAM
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