The U.S. dollar index tumbled from a 20-year high, Wall Street stocks plunged on Friday based on the latest economic data and Amazon.com’s disappointing earnings report and outlook, while rising inflation continued to be the focus. On U.S. Treasurys, his benchmark 10-year yield posted its biggest monthly gain since December 2009, rising to near a high this year, according to economic data. Stock markets came under pressure as monthly inflation showed its biggest rise since 2005. Meanwhile, US consumer spending rose more than expected in March due to strong demand for services.
And on the last day of trading in April, global indices were headed for their biggest monthly decline since March 2020. Amazon shares fell about 16% after reporting a disappointing quarter and outlook late Thursday on rising costs of operating warehouses and shipping packages to customers. Emerging market equities were up 2.29%. The Russian ruble hit a two-year high against the dollar and euro on Friday, with other emerging market currencies also gaining on the weaker dollar.
Also, US labor costs rose at the highest rate in 21 years in the first quarter, indicating rising wage inflation and supporting the Federal Reserve’s monetary tightening. Ian Lyngen, head of US rates strategy at BMO Capital Markets, notes that the data could lead to a more hawkish response from his Fed. “The current market operational assumption is that the Fed has enough flexibility to increase the pace of rate hikes in response to further acceleration in inflationary pressures. (1.85%) to 33,288.9, the S&P 500 fell 116.1 points (2.71%) to 4,171.4 and the Nasdaq Composite fell 412.31 points (3.2%) to 12,459.22. His pan-European STOXX 600 index rose 0.74%, while MSCI’s global equity index fell 1.19%.
On Friday, the dollar appeared to have a six-day lead against the basket of currencies but saw its biggest monthly rise in seven years as concerns over the global economy and a tightening of the Federal Reserve spurred demand for the dollar was making steady progress. The US benchmark 10-year yield rose 2.981% on April 20th, reaching its highest level since December. 2018 marked the fifth consecutive month of growth. His 10-year yield on the benchmark fell 4/32 from 2.863% to 2.8792%. US crude futures fall after three straight days of gains as investors weigh concerns over Russian supply disruptions and the impact of the COVID-19 lockdown in China, the world’s largest oil importer.
Gold prices rose 1% on Friday after the dollar fell, while precious metals were expected to fall at the end of the month in bets on the Fed’s aggressive tightening policy.
- Dollar Falls, US Stocks Fall on Inflation Concerns
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