“Nasdaq Surges Over 1% as US Inflation Slows Down, Providing Hope for Less Stringent Federal Reserve Policies”

The data of the US Department of Labor showed a slowdown in inflation in the country, so the prices of most stocks rose, and the Nasdaq index added more than 1% to its value, as investors considered the recent data an opportunity for the Federal Reserve to move away from its strict policies during the coming period.

During Wednesday’s trading, the S&P 500 added nearly half a percentage point to its value, while the Dow Jones Industrial Average ended the day in the red, with a slight decline of 0.09%.

And the Ministry of Labor said, on Wednesday, that the consumer price index, which measures the cost of a broad sector of goods and services, rose by 0.4% compared to last month, and by 4.9% compared to the same month last year, while expectations were not less than 5%.

After the announcement of the data, US Treasury bond yields declined, which provided additional support to the stock market, at a time when fears began to increase that the hawkish policies of the largest central bank in the world would push the US economy towards recession.

The yield on two-year Treasury bonds decreased by about 11 basis points, to 3.91%, while the yield on the standard ten-year bonds decreased by 8 basis points, to 3.44%. The 10-year bond yield is the most important in the US market, as most products are priced on it.

In Europe, and despite rising at the beginning of the day, European stocks fell on Wednesday after the publication of consumer price data in America, and the Stoxx 600 index was down by 0.4% at the close.

Reuters said a close look at the data showed core inflation in the United States was still high.

The agency added, “Investors are also closely following the ongoing negotiations with the aim of raising the US federal government’s debt ceiling of $ 31.4 trillion, which entered a new stage on Wednesday, at a time when the Treasury Department warns of the government’s inability to pay its obligations by June 1.

The index of personal and household goods companies and the food and beverage index were the most affected in the European markets, while the only gainers were the shares of technology and real estate companies.

Shares in Swedish real estate company SBB fell for the third consecutive session, dropping 46% overall, amid concerns about the group’s debt and as a senior executive sold shares, according to published data.

In a related fashion, oil prices fell by more than a dollar a barrel on Wednesday, ending a three-day rally, after US economic data, issued by the Energy Information Administration, indicated that US crude stocks rose by about three million barrels in the week ending on the fifth of May. /May.

Brent crude fell $1.03, or 1.3%, to $76.41 a barrel at settlement, and US West Texas crude fell $1.15, or 1.6%, to $72.56.

Guy Hatfield, CEO of Infrastructure Capital Management, told Reuters: “Oil prices are falling due to concerns about economic growth, the banking crisis and the usual seasonal downturn during the spring as energy demand moderates.”