US stocks slip as investors await key inflation data

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A trader works on the floor of the New York Stock Exchange January 6, 2014.

  • US stocks drifted from records as investors braced for key inflation data out tomorrow.
  • Wall Street is worried overheating inflation may force the Federal Reserve to change its ultra-easy monetary policy.
  • Bitcoin recovered from its slump as El Salvador said it is adopting the crypto as legal tender.
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US stocks slipped into the close, stumbling away from record highs as investors await key inflation data out tomorrow. The yield on 10-year US Treasury declined five basis points to 1.49%

“Like waiting for the first Star Wars movie sequel, investors are holding their breath for what is expected to be a blockbuster May CPI report,” said Sam Stovall, CFRA chief investment strategist. “Yet in the face of such ‘inflation certainty,’ the 10-year yield has fallen below 1.5%, possibly due to the DC gridlock that likely stamped ‘DOA’ atop the $1.7 trillion Biden infrastructure proposal and questions the need for further fiscal assistance.”

Here’s where US indexes stood at the 4 p.m. ET close on Wednesday:

Bitcoin rose back above $36,000, boosted by El Salvador’s historic move in becoming the first country to establish bitcoin as legal tender. This gives the cryptocurrency the same status as the US dollar in the country.

Shares of Lordstown Motors slumped, deepening losses from the previous session after the electric-vehicle maker said it doesn’t have enough cash to start producing its Endurance truck and warned that it may have to shut down altogether.

In more encouraging SPAC news, retail investors will be able to buy into the IPOs of four blank-check companies run by Chamath Palihapitiya through SoFi’s trading platform, SEC filings revealed.

West Texas Intermediate crude fell 0.4% to $70 per barrel. Brent crude, oil’s international benchmark, dropped 0.29%, to $72.01 per barrel.

Gold dipped 0.1% to $1,891 per ounce.

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US stocks fall as rising inflation fears drive sharp tech selloff

Worried trader

US stocks fell on Monday with the Nasdaq tumbling over 2% as investors feared a pick-up in inflation would weigh on the high-growth sector. Every one of the FAANG stocks – Facebook, Amazon, Apple, Netflix, and Google – closed down more than 2%.

Rising commodity prices are driving investors to question whether inflation will persist and derail the record-setting rally in stocks. Federal Reserve Chairman Powell and Treasury Secretary Yellen have both signaled that any inflationary pressures will just be temporary, but Wharton Professor Jeremy Siegel said on Friday that inflation could spike massively and force the Fed to change its policy stance earlier than anticipated.

Here’s where US indexes stood at the 4 p.m. ET close on Monday:

While some commodity prices, such as lumber and copper, have exploded lately, Goldman Sachs said in a note that agriculture and industrial metals could lead the next leg of the commodities rally for the next twelve months.

A frenzy in stock market retail trading failed to materialize in March despite $1,400 stimulus checks from the Biden administration. Retail trading activity fell to 18% of all US trades in March, according to a note from JPMorgan.

Ether recorded its biggest one-day gain in two years on Monday, as the world’s second-largest currency smashed past $4,000 for the first time. Meanwhile, Dogecoin plunged 10%, continuing its slide following Elon Musk’s appearance on Saturday Night Live over the weekend. Musk also announced his SpaceX company will launch the satellite “DOGE-1 Mission to the Moon” next year.

Gas futures hit their highest level since May 2018 on Monday as a cyberattack against the largest fuel pipeline in the US kept key operations offline for a third day and just weeks before demand for gas should spike for the summer season.

West Texas Intermediate crude fell as much as 1.4%, to $63.95 per barrel. Brent crude, oil’s international benchmark, slid 1.2%, to $68.28 per barrel, at intraday lows.

Gold climbed as much as 0.8%, to $1,846.30 per ounce.

Read the original article on Business Insider