Wall Street’s three major indexes closed higher, with the Nasdaq leading the way with a gain of 0.92%, as well as a rise in the dollar and US Treasury yields; amid the release of US Retail Sales (Jan.) data that rallied to a 2-year high, implying a resilient economy in terms of consumer spending; indicating the US central bank will keep interest rate high for a while longer.
The US Inflation (Jan.) data came in at 6.4% YoY due to higher rent and food costs; higher than expected at 6.2%, though lower than 6.5% in Dec. Meanwhile, Core Inflation still grew at 5.6% YoY, which is above the forecast of 5.5% and lower than 5.7% in Dec.
Wall Street’s main index ended mixed and volatile as the market responded to the US Inflation (Jan.) data, which came in at 6.4% YoY due to higher rent and food costs; higher than expected at 6.2%, though lower than 6.5% in Dec. Meanwhile, Core Inflation still grew at 5.6% YoY, which is above the forecast of 5.5% and lower than 5.7% in Dec.
The market patiently awaits US January inflation data later tonight (WIB). Survey expects the annual inflation rate to fall to 6.2% on yearly basis, from 6.4% in December; and rise to 0.5% from 0.1% (revised from -0.1%) on the monthly level. Core inflation (which excludes fuel prices) is expected to rise 0.4% MoM and 5.5% YoY.
All three Wall Street indexes closed sharply higher by over 1%, with the Dow Jones Industrial Average gaining 1.11% and the Nasdaq leading the way with the biggest gain of 1.48%; as the market awaited US January inflation data later tonight (WIB).
Treasury bond yields surged to a 1-month high triggered by a lackluster on the 30-year Treasury bond auction. US consumer sentiment will improve in Feb. (mom), but households expect inflation to remain high for the next 12 months; as revealed by preliminary readings from the University of Michigan.
The Nasdaq posted its first weekly fall for this year last week, down 2.41%; while the S&P 500 ended the week lower 1.11% and the Dow Jones slightly fell by 0.17%, in a week dominated by hawkish commentary from US Central Bank and earnings reports.
US stock price indexes closed last week with a loss below 1%; the Nasdaq led the way with a loss of 0.61% as selling pressure happened on large-cap stocks after Treasury bond yields surged to a 1-month high triggered by a lackluster 30-year Treasury bond auction. However, there was a rally in energy stocks driven by Russia’s decision to cut its oil products as revenge for Western economic sanctions.
US stock indexes ended in negative territory, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly as sales only reached USD 21 billion, with the final sale of USD 96 billion this week. Markets view the rising bond yields as an alternative investment that is more attractive than equities.
