Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Gaza Ministry of Health: Direct threats to residential areas surrounding hospitals are part of "Israel’s" systematic plan targeting the healthcare system
Gaza Ministry of Health: We renew our urgent appeal to the relevant authorities to intervene and protect healthcare institutions
Gaza Ministry of Health: We warn against reaching the point of a complete collapse of the healthcare system in the southern part of the Strip
Gaza Health Ministry: Nasser Medical Complex in Khan Younis going out of service would lead to a humanitarian disaster with unpredictable consequences
Palestinian sources: Several displaced Palestinians were reportedly injured after being targeted by occupation forces while waiting for aid west of Rafah
Israeli media: A senior European Union official hinted that 'Israel' would be held accountable for violating international law in Gaza
Al-Qassam Brigades spokesperson Abu Obeida: The losses incurred by the occupation today in Khan Younis and Jabalia are an extension of a series of top-tier operations
Al Mayadeen's correspondent in South Lebanon: The invading Israeli force is digging a trench and erecting earthen berms, amid detected activity suggesting preparations to install espionage equipment
Al Mayadeen's correspondent in South Lebanon: An Israeli force breaches the "technical fence" in the Wazzani area
Israeli media: 4 Israeli soldiers killed in the Gaza Strip

US stock losses increase ahead of Friday inflation report

  • By Al Mayadeen English
  • Source: Agencies
  • 10 Jun 2022 15:23
4 Min Read

Following the European Central Bank's announcement of a rate hike plan, US indexes fell.

  • x
  • Stock losses increase ahead of Friday inflation report.
    Stock losses increase ahead of Friday inflation report.

As investors anticipated inflation statistics that would help determine the pace of the Federal Reserve's interest-rate rises this year, US market indexes fell to their lowest levels in more than three weeks on Thursday.

The S&P 500 index finished 2.4 percent lower, or 97.95 points, at 4017.82, while the Dow Jones Industrial Average dropped 1.9 percent, or 638.11 points, to 32272.79.

The Nasdaq Composite Index, which is centered on technology, fell 2.7 percent, or 332.05 points, to 11754.23. For much of the day, the major indices were in small drops until plummeting in the final hour of trade.

Traders and strategists believe the inflation statistics will have a significant impact on the next round of market activity and will help shape the Federal Reserve's interest-rate choices later this year. The Federal Reserve will meet next week, and it is largely expected that the central bank will raise its main interest rate by half a percentage point, as it did in June.

“Once we get a few more data points on inflation, hopefully they confirm that things are coming off the boil and the Fed, after June and July, can be a little less hawkish into the fall,” said Tim Holland, chief investment officer at Orion Advisor Solutions. “That’s what the markets are hoping for.”

Investors have been positioning their portfolios throughout the year to account for the conclusion of easy-money conditions in the United States. Traders, on the other hand, must now account for tighter policy in the Eurozone.

European Central Bank raises interest rates

Related News

Rosatom accuses IAEA of double standards and Western bias

Japan reports progress in US trade talks but no tariff agreement yet

The European Central Bank announced Thursday that its key interest rate would be raised from minus 0.5 percent to zero or higher by September, and most likely higher after that. The central bank has stated that it intends to begin raising rates in July with a quarter-percentage-point increase. It also stated that its large-scale bond-buying program would terminate on July 1.

The news sent equities plunging in both the United States and Europe. The Stoxx Europe 600 index fell about 1.4 percent.

The actions by central banks in the United States and Europe come as global inflation continues to put pressure on people. When consumer-price index data for May is announced on Friday, investors will get a new image of inflation in the United States.

Read next: US Federal Reserve hikes interest rate

 

According to economists polled by The Wall Street Journal, inflation in the United States maintained steady at 8.3 percent in May, the same annual rate as in April.

“The concern here in the US is the Fed tightening into an economy that is already showing signs of a slowdown,” said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management.

“The ECB is tightening into an even more pronounced slowdown; that could impact global growth, which in turn could be another headwind for company earnings.”

The focus in markets has switched to what the Fed might do at its September meeting. According to investors and analysts, some traders have been hesitant to make large wagers in the market until a clearer picture develops.

Some strategists say that this has resulted in more turbulent trading in recent sessions as traders try to figure out whether this year's market selloff has reached a bottom or if more pain is on the way. Many others are also considering the prospect of a US recession.

“People are not having any conviction one way or another and are taking chips off the table,” said Viraj Patel, global macro strategist at Vanda Research. “They are not wanting to get caught offside in either direction.” 

  • United States
  • Europe
  • US Federal Reserve
  • US inflation

Most Read

Lebanon's PM Nawaf Salam meets with US envoy Morgan Ortagus in Beirut on April 5, 2025 (Dalati Nohra via AP)AP)

Morgan Ortagus to exit US role in Lebanon amid policy shift

  • Politics
  • 1 Jun 2025
A Palestinian woman mourns as she embraces the body of her daughter Mayar Abu Odeh, 8, who was killed in an Israeli army strike on Gaza. at Al-Shifa Hospital in Gaza City, Wednesday, June 4, 2025. (AP)

French port workers block arms shipment to 'Israel' amid Gaza genocide

  • Politics
  • 4 Jun 2025
New Syrian group claims Golan strike, vows resistance to 'Israel'

New Syrian group claims Golan strike, vows resistance to 'Israel'

  • Politics
  • 4 Jun 2025
Palestinians struggle to get donated food at a community kitchen in Khan Younis, southern Gaza Strip, Monday, June 2, 2025. (AP)

Boston Consulting Group withdraws from GHF

  • Palestine
  • 3 Jun 2025

Coverage

All
War on Gaza

Read Next

All
https://english.almayadeen.net/news/politics/pentagon-chief--nato-likely-to-back-trump-s-5--defence-spend
Politics

Europe spent $3 trillion on defense, but got little in return - FT

Power, parties, and scandal: Trump’s ties to Epstein: Telegraph
Europe

Power, parties, and scandal: Trump’s ties to Epstein - The Telegraph

Eilat port as seen from the sea, occupied Palestine, March 12 2009 (wikimedia commons)
Politics

YAF operations forced 80% plunge in Eilat port revenues in 2024

EU backs International Criminal Court after US sanctions judges
Europe

EU backs International Criminal Court after US sanctions judges

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS