Price levels, which remained high in April, a signal that the Federal Reserve’s efforts could be even more aggressive in fighting inflation, extending losses to early trading on Thursday.
The Dow Jones Industrial Average lost 250 points, or 0.8%, and the Nasdaq Composite was down 1.7%. The S&P 500 lost about 1% after stabilizing in the previous section at 3,935.18, the lowest level since March 2021. In this year’s first 90 trading days, the S&P lost about 17%.
The April consumer price index (CPI) showed an inflation rate close to a 40-year high. In addition, the core price index, which excludes energy and some volatile food categories, was higher than economists’ forecasts, fueling concerns that high prices may persist.
Enough to suggest that the Federal Reserve can intervene further through a monetary tightening, increasing interest rates, to curb the rise in price levels.
The 10-year Treasury yield fell to 2.82% on Thursday morning, with bonds continuing to rebound. The 10-year Treasury yield fell on Wednesday for a third consecutive day, closing at 2.92%.
Oil prices in the United States also fell by more than 1%: Texas Intermediate, after a 6% rebound on Wednesday, stood at $ 104 a barrel.
All three trading indices have been at their lowest levels since the beginning of the year on the uncertainty of the following moves by the central bank.
