Major indexes of the U.S. New York Stock Exchange (NYSE) plunged as the 10-year U.S. government bond rate surpassed 2% a year as the CPI soared 7.5% year-on-year in January.
According to the U.S. economic broadcaster CNBC on the 10th (local time), the Dow Jones Industrial Average of the New York Stock Exchange closed at 35,241.59, down 526.47 points (1.47 percent) from the previous day.
Standard & Poor’s 500 fell 83.10 points (1.81%) to 4504.08, and NASDAQ closed at 14,185.64, down 304.73 points (2.10%).
Wall Street noted that the CPI in January far exceeded market expectations. The Federal Reserve’s possibility of a 0.5 percentage point in March and a seventh rate hike this year surged due to concerns that high inflation would continue. The 10-year government bond rate also surpassed 2%, reflecting the market atmosphere. Federal Reserve Bank President James Bullard also said he was open to the possibility of a 0.5 percentage point rate hike in March and wanted to raise 1 percentage point by July.
By stock, large technology stocks such as Microsoft (-2.84%), Apple (-2.34%), Meta (-1.69%), and Amazon (–1.36%) were all weak. Barry Gilbert of LPL Financial said, “As prices rise again in January, the market is concerned that the Fed will be aggressive.”
International oil prices have risen to negotiations to restore Iran’s nuclear agreement (JCPOA) and the geopolitical crisis in Ukraine. The price of West Texas Intermediate (WTI) in March on the New York Commercial Exchange closed at $89.88 a barrel, up 0.22 (0.3%) from the previous day. WTI was once traded at $91.74, up more than 2%.
