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It has been a tough week on Wall Street and especially the technology index Nasdaq has fallen heavily throughout the week. Thursday begins trading day with large fluctuations on Wall Street.
About three hours after the stock market opened on Thursday, it looks like this:
- S&P 500 down 0.3 percent
- Nasdaq up 0.05 percent
- Dow Jones down 0.5 percent
On Wednesday, the stock markets were characterized by fiery inflation figures. The report showed that inflation slowed less than expected in April.
Inflation for April was 8.3 per cent and is still at a record high, but it is slightly lower than the price increase of 8.5 per cent that was noted in March. The last time it was at this level was in the early 1980s.
“The higher-than-expected CPI numbers that came yesterday may increase fears that the Fed will pursue a monetary policy tighter than expected, longer than expected, and lose liquidity from the markets, which until recently have been flooded with it,” said Russ Mold, chief investment officer. by AJ Bell, according to Bloomberg News.
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Strategies from CitiGroup say that growth stocks, including the vulnerable technology sector, are likely to remain under pressure as central banks tighten monetary policy, which in turn could mean even higher interest rates.
Price pressure
The Nasdaq index is now down -27.4 percent this year, the S&P 500 is down -17.4 percent and the Dow Jones is down – 12.4 percent.
Nordnet analyst Roger Berntsen writes in a comment on Thursday that it is now in the cards that growth both in the US, but also in the rest of the world, will slow down in the future as a result of the underlying price pressure in the economy.
On Wednesday last week, the Fed, the US Federal Reserve, raised its key interest rate by 0.5 per cent. Several large interest rate hikes have been announced in the future. The long-term target for consumer price inflation in the United States is two percent.
Decline in Europe
There is also a broad decline in European markets on Thursday. Fear of inflation is ravaging the stock market, with growing concern that inflation in the US has not reached its peak, writes Trading Economics.
The German DAX index falls above two percent and is down 2.23 percent. The European collective index Stoxx 600 falls 2.40 percent and falls to its lowest level in nine weeks.
In the UK, the FTSE 100 index is down 1.82 percent and the Paris Stock Exchange is down 2.17 percent
The oil price is trading at 105.07 dollars per barrel, down 1.27 percent from Wednesday’s levels.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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