[Mercato USA]Stocks Fall 3 Days in a Row, Bonds Fall as Interest Rate Hikes Continue – Dollar Temporarily at 139 yen – Bloomberg

The US stock market fell for a third consecutive day on the 30th, with the S&P 500 Index and the Nasdaq 100 Index focusing on tech stocks both closing at a low in about a month. A series of US economic data showed that households and the labor market remained strong, underlining the Fed’s determination to continue to raise interest rates aggressively to curb inflation.

The US Treasury fell. In August, the board of directors of a private research agency in the United States announcedUS Consumer Confidence Indexit grew faster than market expectations and two-year bond yields temporarily reached their highest level since November 2007.Job opportunities in the United Statesit rose unexpectedly in July, suggesting that the labor market is still tight and wages are under upward pressure.

US equities started slightly higher but soon returned to bearish. The S&P 500 fell 1.1% to 3986.16, the lowest in about a month. The Dow Jones Industrial Average fell $ 308.12, or 1.0%, to close at $ 31,790.87. The Nasdaq Composite and the Nasdaq 100 both fell 1.1%.

On the 30th, three people including President Williams of the New York FedPresident of the Federal Reserve Bank of the United Statesit reaffirmed the continuation of interest rate hikes to curb inflation and took the form of a speech on the 26th by President Powell of the Federal Reserve System (FRB). Swap markets are now pricing in a more than 70% probability of a 75 basis point rate hike in September.

“You can’t help but be more nervous about the economic data to come, especially the employment data,” said Sean Cruz, chief trade strategist at TD Ameritrade. “It is not surprising that the market has reacted so strongly to consumer confidence and job openings,” he said.

“Volatility is a sign that the market is doing what it should: react to a changing outlook,” said Wes Krill, head of investment strategy at Dimensional Fund Advisors. “We can exit the bear market, but at that point the market will be bearish and there will still be days of high volatility because there is a lot of news to digest.”

In the US Treasury market, two-year bonds, which are susceptible to monetary policy, fell and the yield temporarily reached a 15-year high of 3.49%. Yields on 10-year bonds are almost flat. After climbing 3.15% at one point at 4:16 pm New York time, it was one basis point lower at 3.11%.

A series of economic data released Wednesday “suggests employment growth has been stable again” in the August employment report due out on Sept. 2, said Ian Lingen, head of US rate strategy at BMO Capital Markets. “A solid data series will continue to weigh on the shorter maturity zones,” the report says.

The US Federal Reserve (Fed) will begin reducing its balance sheet this week.rhythmIncrease “The impact on the economy of quantitative tightening (QT) will likely be relatively small in the first six to twelve months, but it could become more evident around the middle of next year,” said Jeff Schultz, an investment strategist at Clearbridge. Investments. there is, “he said.

The dollar rose on the foreign exchange market. The dollar was bought against major currencies as interest rates rose following the release of US economic data. However, it fell against the euro. The euro was supported by a possible 0.75 percentage point rate hike by the European Central Bank (ECB) at next week’s policy meeting and easing of concerns over energy supply.

“Without taking energy market risks too seriously, interest rate levels suggest the euro would be around $ 1.08 against the dollar,” said Kit Jacks, Société Générale’s chief currency strategist. “The European energy crisis is unlikely to be resolved anytime soon and I doubt the euro has hit a low in the short term, but I think the bearish consensus on the euro has gone too far in the short term,” he said.

The Bloomberg Dollar Spot Index, which tracks the movements of the dollar against the 10 major currencies, was up 0.2%. The dollar rose less than 0.1% against the yen to 138.73 yen per dollar. After the release of the US index, it temporarily rose to the 139 yen level, and then stabilized.

New York crude oil futures fell sharply as state-owned oil marketing company (SOMO) executives wake up in capital Baghdadconflictit did not affect the country’s crude oil production and exports.interviewsaid in Market liquidity was low, resulting in increased market volatility.

New York Mercantile Exchange (NYMEX) West Texas Intermediate (WTI) futures for the October contract closed at $ 91.64 a barrel, down $ 5.37 (5.5%) from the previous day. The London ICE North Sea Brent contract for October fell from $ 5.78 to $ 99.31.

“The market has collapsed due to the message that Iraq will keep its oil ports open despite massive political turmoil,” said Dennis Kistler, senior vice president of BOK Financial. But he said that the balance between supply and demand has “tightened somewhat” and that this week’s weekly US inventory data is expected to show up to 600,000 barrels of crude oil inventories, which would drive inventories to the lowest level. low in three months.

New York gold futures fell Fed Chairman Jerome Powell last weekendcommentIn response, the US Fed’s intention to maintain its tightening policy for the time being was aware. Gold futures for December delivery on the New York Mercantile Exchange (COMEX) closed at $ 1,736.30 an ounce, down 0.8% from the previous day.

“The context for gold remains difficult,” analysts led by Commerzbank’s Tu Lan Nguyen said in a report. “The market will likely change direction when a rate cut in the US is in sight and a rate cut becomes an option,” she said.