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Wall Street falls sharply at Monday’s open on fears of US inflation.

Wall Street opened this Monday in the red and the S&P 500 lost 2.58%. If the loss is sustained through the close, the broader index would slip into a bear market for the first time since 2020, at a time when shareholders are increasingly concerned about US inflation, the highest in four decades. .

Ten minutes after the trading floor opened, the Dow Jones lost 1.98% or 622.42 points, to 30,770.37, while the selective S&P 500 dropped 100.48 units, moving away from the four thousand barrier, until 3,800.38.

The composite index of the Nasdaq market, where the main technology companies are listed, fell 2.97% or 336.38 integers, to 11,003.64.

Wall Street begins another bad week due to fears of inflation and signs of a recession in the United States.

On the 10th, the Bureau of Labor Statistics announced that the inflation rate in the United States rose to 8.6% in May, three tenths above that of April and the highest in forty years.

May’s inflation rate, the highest since 1981, has been driven above all by higher energy prices and also, albeit to a lesser extent, by rising house and food prices.

The hangover of a higher-than-expected US inflation reading continues to cause intense pain in the markets, as it extinguishes hopes that the US Federal Reserve could take its foot off the gas on interest rate hikes.”, says the investment director of AJ Bell, Russ Mould, in a note collected by The Wall Street Journal.

All sectors woke up with losses, with the greatest losses for energy (-4.45%), non-essential goods (-3.43%) and raw materials (-3.16%).

None of the Dow Jones companies was spared this morning from losses, with Boeing (-5.68%) as the most affected, followed by Salesforce (-4.8%) and Dow (-3.49%).

In other markets, Texas oil fell to US$119.62 a barrel, the 10-year bond yield rose to 3.27%, gold lost value to US$1,838.30 per ounce and the dollar gained ground against the euro , with a change of 1.0441.

With information from EFE

Source: Elcomercio

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