Dow drops nearly 300 points as inflation and Covid-19 fears grow

Stock Markets

Dow down Inflation fears and the growing threat of the Covid-19 delta variant overshadowed strong retail sales data and better than expected earnings reports as the Dow fell after touching 35000 on the day. U.S. indices finish the week in the red The Dow lost nearly 300 points to close down at: 34688 S&P 500 closed down at: 4327 Nasdaq closed down at: 14427 Inflation fears The market had an eye on inflation even though the S&P 500 and Dow did touch record highs during the week. The consumer price index (CPI)…

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UK inflationary concerns remain as inflation hits 2.5%

Inflation

Inflation at 2.5% The UK inflation rate hit 2.5% in the year to June, the highest for nearly three years, as the ‘re-opening’ of the UK economy continued. The Consumer Prices Index (CPI) measure of inflation rose from 2.1% in May, the Office for National Statistics (ONS) said, driven by higher transport and fuel costs. The rate is higher than the Bank of England’s 2% inflation target. That will fuel the debate about whether interest rates need to go up – or at least when. Sectors most affected Transport, fuel,…

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Fed keeps money tap open and flowing

Running tap with money

‘Ways off’ Jerome Powell – the Fed chair, said in a prepared statement yesterday that they are still a ‘ways off’ from altering policy and he expects inflation to moderate as it is seen as a temporary situation. He said that the economy needs to improve more before the central bank will change its ultra easy monetary policy. So no change there then – cheap free flow of money to be pumped further in to the all ready over expanded stock market. Jobs He also said that the labour market…

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U.S. inflation spreads through economy at 5.4% its biggest rise since 2008

Inflation

Secondhand vehicle purchases, car, van and truck rental, food, energy, clothing, travel (plane) tickets and hotels rose sharply in June 2021 The cost of living climbed by the largest amount since 2008 as inflation spreads more broadly through the U.S. economy. Transitory inflation? Fresh questions about whether the spike in prices will subside as quickly as the Federal Reserve predicts are back in focus again. Some analysts are now saying that not only is the U.S. economy hot – it is white hot! Price jump For the 12 month period,…

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Dow touches 35000 as big earnings data due

Stock markets up

New Dow record just short of 35000 Dow Jones Industrial Average on Monday closed just shy of 35000 after gaining 126 on the day. Earnings report Second quarter earnings season kicks off this week with earnings from two big banks, along with some other companies. Pepsi co. came up with earning beat. Banks are expected to release stellar results too. Inflation The market will also be watching a key inflation report due today at 13:30 (BST) with the release of June’s Consumer Price Index (CPI). CPI is expected to increase…

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Dow S&P 500 & Nasdaq reach new records… again!

U.S. stock records

After a weird week for U.S. stocks – the Dow, S&P 500 and Nasdaq yet again notch new records on Friday after losing ground during the week Inflation and growth Do you believe stalling economic growth is a bigger threat than inflation? Right now I have less of an idea that at the beginning of the week. What is going on? Fears of runaway inflation have been swapped for worries about a rapid slowdown in global economic growth. As I see it there are three obvious elements in the shift…

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S&P 500 & Nasdaq notch up fresh records with Big Tech in favour

Record highs

All time records set again The S&P 500 rose to an all time high of: 4358 The Nasdaq closed at an all time high of: 14664 Big tech stocks do the heavy lifting Popular technology and internet stocks once again outperformed the market on Wednesday 7th July 2021. Investors bought growth stocks instead of the reopening sectors that were in favour last month and proved popular in the first half of the year. Apple, Microsoft and Amazon were all up on Wednesday each reaching double digits gains over the last…

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S&P 500 & Nasdaq eke out new all time highs

Bear Bull

The S&P 500 and the Nasdaq moved into uncharted waters at close of business yesterday, 29th June 2021 both claiming new records New all time highs reached! The Nasdaq closed at an all time record high of: 14528 The S&P 500 closed at an all time high of: 4292 But are investors finally turning bearish on the S&P 500? Now that we have completed the first half of the year notching stellar U.S. stock gains – how likely is it that the S&P 500 will continue to charge to new…

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UK inflation reading higher than expected at 2.1%

Inflation

UK inflation jumped to 2.1% in the year to May As the UK economy opened up – consumer spending increased. The Consumer Prices Index (PCI) measure of inflation climbed from 1.5% in April, according to the Office for National Statistics (ONS), driven by the rising cost of clothes, fuel, food and drink. Inflation vs interest rates Inflation is now at its highest reading since before the pandemic, and this will place the possibility of interest rate hikes back on the agenda. Above Bank of England’s 2% target May’s reading was…

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Record highs for Nasdaq and S&P 500

Gamble

The only way is… up? The Nasdaq reached a record high on Monday 14th June 2021 as investors were tempted back into growth stocks ahead of a Federal Reserve two day meeting due to start on Tuesday 15th June 2021 Nasdaq The Nasdaq tech loaded index climbed 0.7% to an all time closing high of: 14174 clearing the previous record on 26th April 2021. S&P 500 The S&P 500 gained around 0.2% to make another record close at: 4255 boosted by technology sector gains. The Dow Jones Industrial Average slipped…

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