Xinhua News Agency, New York, June 10thSummary: The market is bearish on inflation data, the S&P 500 index hits a new high
Xinhua News Agency reporter Liu Yanan
Although the US Consumer Price Index (CPI) in May announced on the 10th increased more than market expectations, investors believe that the current increase in inflation is temporary and the Fed will not tighten monetary policy anytime soon. Affected by this, the three major stock indexes of the New York stock market rose across the board, and the S&P 500 stock index closed at a record high.
As of the close of the day, the Dow Jones Industrial Average rose 19.10 points to close at 34466.24 points, an increase of 0.06%; the S&P 500 index rose 19.63 points to close at 4,239.18 points, an increase of 0.47%; the Nasdaq Composite Index rose 108.58 points , To close at 14020.33 points, an increase of 0.78%.
According to data released by the US Department of Labor on the 10th, the US CPI rose by 0.6% month-on-month in May, higher than market expectations, but lower than the 0.8% month-on-month increase in April; the month-on-year CPI rose 5% year-on-year, the highest since August 2008 .
The market pays close attention to the US May inflation data. Eric Vinograd, an economist at AllianceBernstein Asset Management, said that the higher-than-expected increase in the US CPI in May was largely driven by sectors that were severely hit by the new crown epidemic and are still under pressure from the supply chain. This means that the current rise in inflation will be transitional.
Scott Wren, global market strategist at Wells Fargo Consulting, said that he believes the Fed’s loose monetary policy will continue for some time. Matt Simpson, an analyst at the online brokerage firm Jiasheng Group, said: “For capital markets, the Fed’s attitude is the key.”
On that day, U.S. bond yields fell rapidly, indicating that bond market investors also believed that higher inflation was temporary. Since the 3rd of this month, the U.S. 10-year Treasury bond yield has fallen continuously, temporarily eliminating a major negative factor facing the stock market. On the 10th, the U.S. 10-year Treasury yield briefly spiked and then fell back, falling 4.88 basis points to close at 1.441%, the lowest level since March 3.
However, Prajakta Bid, a strategist at MRB Partners, a market research organization, believes that the US CPI rose sharply in April and May, exceeding expectations, but the inflation outlook is still underestimated by the market. Inflation in the United States will change from cost-driven inflation to demand-driven inflation driven by economic restart, and then into overall demand-driven inflation, which will surprise many investors.
【Error correction】
【Editor in charge: Feng Li】
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