June 2, 2023

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US stock markets end volatile session

US stock markets end volatile session

After US stocks fluctuated further and lower throughout the afternoon trade on Monday, investors compared positive returns from the Bank of America to a surge in bond yields ahead of higher corporate earnings reports this week.

Traders are waiting for a package of corporate profits to help assess the impact of the Ukraine war and the rise in inflation on corporate finances. Netflix, Tesla, Johnson & Johnson and International Business Machines (IBM) will release their results this week.

Weak trading levels and the closing of European markets on Monday after the Good Friday holiday contributed to the trading session turmoil.
According to preliminary data, the benchmark Standard & Poor’s 500 Index ended the trading session at Wall Street, down 0.02 percent at 4,391.69 points, while the Nasdaq Composite Index ended 17.67 points, or 0.14 percent, at 13331.92 points.

The Dow Jones Industrial Average ended 34.77 points, or 0.10 percent lower, at 34,416.46 points.

The yield on the 10-year treasury rose 5 basis points to 2.866%, for the first time in late 2018. The yield of the 30-year treasury has increased by 2 basis points to 2.942%.

Earnings are known to move inversely with prices, and a base point is 0.01%.

In turn, investors continue to assess inflationary pressures on their portfolios and the broader economy. Last week, the U.S. Census Bureau reported that retail sales were up 0.5% in March, slightly lower than Dow’s expected 0.6% gain, and that gas stations were the biggest driver of sales.

The Manufacturers ‘Price Index for March, which measures wholesalers’ prices, was 11.2% higher than the previous year, the highest profit since 2010, according to the Bureau of Labor Statistics.

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The reading comes a day after the release of the latest consumer price index, which showed 8.5% price inflation last month, its biggest increase since 1981, compared to the same period a year ago. But the core CPI for that month was up only 0.3%. , Compared to 0.5% on inflation expectations. (Agencies)