Highlights
Another nasty inflation reading sent bond yields higher and equities reeling Tuesday. The Dow Jones industrial average lost 1.5 percent, the S&P 500 dropped 1.6 percent, and the Nasdaq lost 2.0 percent, with the major averages dropping at the close.
Bond yields surged with the 10-year note yield up 7 basis points. The dollar dropped, and oil prices slipped. Equities ended a bearish April with the three major indexes down 4-5 percent on the month after five consecutive months of gains.
News that employment costs jumped by 1.2 percent in the first quarter, well above expectations and up from 0.9 percent in the fourth quarter, aggravated worries about persistent US inflation and fears that interest rates will remain high longer. That topic was especially on investors' minds as the Federal Open Market Committee began its two-day policy meeting Tuesday.
Among stock groups, megacaps had a terrible day to lead the market lower. Among momentum favorites, Alphabet fell 1.9 percent, Amazon dropped 3.3 percent, Apple lost 1.8 percent, Invidia fell 1.5 percent, Microsoft lost 3.2 percent, and Tesla plunged 5.6 percent. The EV maker is still up 12 percent over the last five days.
Bond yields surged with the 10-year note yield up 7 basis points. The dollar dropped, and oil prices slipped. Equities ended a bearish April with the three major indexes down 4-5 percent on the month after five consecutive months of gains.
News that employment costs jumped by 1.2 percent in the first quarter, well above expectations and up from 0.9 percent in the fourth quarter, aggravated worries about persistent US inflation and fears that interest rates will remain high longer. That topic was especially on investors' minds as the Federal Open Market Committee began its two-day policy meeting Tuesday.
Among stock groups, megacaps had a terrible day to lead the market lower. Among momentum favorites, Alphabet fell 1.9 percent, Amazon dropped 3.3 percent, Apple lost 1.8 percent, Invidia fell 1.5 percent, Microsoft lost 3.2 percent, and Tesla plunged 5.6 percent. The EV maker is still up 12 percent over the last five days.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
