US Stocks Tumble on Rate Concerns and Economic Newsæ›´æ–°
The US stock market took a tumble on Wednesday, May 29th, 2024, as concerns about interest rates lingered following the release of the Beige Book. Investors are also keeping a close eye on key inflation data set to be released later in the week.
Market sentiments were further dampened by the rise in treasury yields, with the benchmark 10-year U.S. Treasury note hitting four-week highs at 4.6%. This increase came after weak debt auctions, adding to the overall unease among investors.
The upcoming report on personal income and spending for April, which includes inflation readings preferred by the Federal Reserve, is expected to have a significant impact on the future interest rate outlook. This data will be crucial ahead of the Fed’s next monetary policy meeting scheduled for June 11-12.
By the end of the trading day, the Dow Jones Industrial Average index dropped by 411.32 points, the S&P500 index fell by 39.09 points, and the Nasdaq Composite index decreased by 99.30 points. All sectors ended lower, with the energy sector being the worst performer, down 1.76%.
In other economic news, the Fed’s Beige Book noted that US economic activity continued to expand, with prices rising modestly. The report highlighted varying conditions across industries and districts, with retail spending remaining flat to slightly up.
Additionally, US crude oil inventories saw a significant decline of 6.5 million barrels for the week ending May 17th, according to The American Petroleum Institute. Gasoline inventories fell, while distillate inventories rose, adding further complexity to the market dynamics.
Overall, the stock market’s performance on Wednesday reflects the ongoing uncertainty and volatility surrounding interest rates and inflation, making it a challenging time for investors to navigate.