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Investors’ Concerns and Market Dips: US Stock Markets React to Inflation Data and Interest Rate Cuts


Feb 13, 2024
Today’s World Markets: US stocks slide as inflation data lowers expectations for rate cuts; S&P 500, Nasdaq drop more than 1%

On Tuesday, US stocks slipped at the opening bell after disappointing inflation data was released, causing concerns about a potential interest rate cut. The Dow Jones Industrial Average fell 98.21 points or 0.25 per cent, while the S&P 500 opened lower by 53.90 points or 1.07 per cent, and the Nasdaq Composite dropped 343.67 points or 2.16 per cent.

Microsoft shares fell by 2.3 per cent, and Nvidia lost 2.1 per cent as a result of the inflation data. Meanwhile, Treasury yields jumped as the 10-year Treasury rate rose to 4.25 per cent and the 2-year yield leaped to 4.57 per cent due to the inflation data release.

In Asia, stock markets were mixed, with Japan’s Nikkei 225 edging up by 2.9 per cent but Hong Kong’s Hang Seng Index and China’s Shanghai Composite closed for a holiday on Tuesday. Meanwhile, oil prices rose due to uncertainties over fighting in the Middle East as Brent futures increased by $0.54 cents to $82.54 a barrel and US West Texas Intermediate (WTI) crude added $0.5 cents at $77.42 a barrel on Tuesday afternoon trading hours (GMT+8).

Gold prices also rose on Tuesday as spot gold increased by $0

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