(ĐTCK) Wall Street experienced a volatile Monday (February 22) session at the beginning of the week.
At the start of the new week, escalating government bond yields and rising inflation outlook reduce the attractiveness of growth stocks, led by technology stocks.
10-year US government bond yields continued to rise to 1,363%. Since the beginning of February, the 10-year yield has risen by about 26 basis points, seeing the biggest monthly gain in three years. Meanwhile, the yield on the 30-year tenor hit a 1-year peak of 2.2% on Monday.
Shares of Apple, Microsoft, Alphabet, Tesla and Amazon.com all slumped during the session, down from 0.9% to 5%.
This week, the market focuses on a semi-annual hearing before the Senate Banking Committee on Feb. 23 by Fed Chairman Jerome Powell. Investors are expected to focus on looking for any potential signals around the dovish Fed policy change to determine market trends.
On the other hand, the good fourth-quarter earnings season helped Wall Street’s key indexes hit record highs earlier last week, but the rally has lost momentum, in part due to concerns about potential. struggling with the US immunization effort and inflation due to the stimulus measures.
Ending session 22/2, The Dow Jones increased by 27.37 points (+ 0.09%) to 31,521.69 points. The S&P 500 decreased by 30.21 points (-0.77%) to 3,876.5 points. The Nasdaq Composite fell 341.42 points (-2.46%) to 13,533.05 points.
European stocks turned to fall on concerns around inflation, and profit taking took place in technology stocks, although statements from the European Central Bank (ECB) caused yields. down bonds.
On Monday, ECB Chairman Christine Lagarde said the bank is closely monitoring the evolution of long-term nominal bond yields and that there may be future ECB intervention in the debt market.
Ending session 22/2, The FTSE 100 index in the UK decreased 11.78 points (-0.18%) to 6,612.24 points. The DAX index in Germany decreased by 43.19 points (-0.31%), down to 13,950.04 points. The CAC40 in France decreased by 6.11 points (-0.11%) to 5,757.44 points.
In Asia, Japanese stocks rallied as optimism about economic recovery drove materials, travel and cycle stocks cheap.
Chinese stocks fell as investors worried about the risk of policy tightening from the central bank.
The People’s Bank of China (PBOC) on Saturday (February 20) announced it would keep lending rates low on business and household loans for the 10th consecutive month, however There are signs that the authorities may begin to adopt a stricter policy stance in the near future.
Hong Kong stocks fell as investors worried about the risk of policy tightening in China.
South Korean stocks fell amid strong export data that could not offset concerns about a slow recovering labor market.
Ending session 22/2, The Nikkei 225 in Japan increased by 138.11 points (+ 0.46%) to 30,156.03 points. The Shanghai Composite Index in Shanghai fell 53.72 points (-1.45%) to 3,642.44 points. The Hang Seng index in Hong Kong fell by 324.90 points (-1.06%) to 30,319.83 points. The KOSPI in Seoul decreased by 27.87 points (-0.90%) to 3,079.75 points.
Gold prices soared in the trading session on Monday and returned to $ 1,800 per ounce. Predictions of rising inflation have led to concerns about the stock market and led investors to look for a safe asset, gold. Meanwhile, the strength of the weak dollar also supports precious metals.
Ending session 22/2, spot gold price increased by 25.90 (+ 1.45%) to USD 1,810.50 / ounce. Gold futures for delivery in March increased by $ 2.30 (+ 0.13%) by $ 1,776.30 / ounce.
After two plunging sessions, oil prices surged strongly in the first session of the week in the context of the slow return of US oil production as the ice still interrupted all activities in Texas.
It can take US shale oil producers at least 2 weeks to fully restore normal production, as frozen pipes and power supply interruptions slow recovery.
Ending session 22/2, Crude oil futures price of the US (WTI) increased 2.25 USD (+ 3.8%), to 61.49 USD / barrel. Brent crude oil price increased by 2.33 USD (+ 3.7%) to 65.24 USD / barrel.
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